Staff of Reuters Read for 2 minutes (Reuters) – BENGALURU (Reuters) – Altria Group Inc announced on Friday that it will sell its Ste. Michelle Wine Estates business for $1.2 billion to private equity firm Sycamore Partners Management, as the tobacco giant moves to focus its business on cigarette alternatives for smokers. Altria has been developing its line of dipping tobacco, nicotine pouches, and other smokeless oral tobacco products as the popularity of cigarettes declines in the United States, particularly among teenagers. However, Altria has suffered a significant loss from its $12.8 billion investment in Juul Labs, as the company’s value has plummeted due to increased regulatory scrutiny. When Altria bought smokeless tobacco business UST in 2008, it acquired Ste. Michelle, which distributes wine from estates in Washington State, Napa Valley, and other parts of the United States. “We believe the deal is an important milestone in Altria’s value generation for shareholders, and it allows our management team to focus more on achieving our Vision of responsibly transitioning adult smokers to a non-combustible future,” stated Altria CEO Billy Gifford. In the second half of 2021, the deal is likely to close. Uday Sampath contributed reporting from Bengaluru, and Arun Koyyur edited the piece./n
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