Altria to sell Ste. Michelle wine estates business to Sycamore Partners for about $1.2 billion in cash

Altria Group Inc.
MO,
-0.77%
said Friday it has agreed to sell its Ste. Michelle Wine Estates business to private-equity firm Sycamore Partners Management L.P. for about $1.2 billion in cash. Altria expects the deal to close in the second half of 2021. The deal is expected to allow the company focus on its transition to non-combustible products. Proceeds will be used to fund share buybacks, subject to board approval. Altria shares were up 0.8% premarket and have gained 13% in the year to date, while the Dow Jones Industrial Average
DJIA,
-0.75%
has gained 12.5% and the S&P 500
SPX,
-0.86%
has gained 15%.

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