Tobacco Giant Altria sold Wine Business for $1.2 BillionMarch 7, 2022
Eleafworld.FR Blue Hole New Consumer Report, July 10 news, according to Reuters, Altria Group (MO.N) said on Friday it will sell its wine business Ste. Michelle Wine Estates as the tobacco giant looks to focus on business on cigarette substitutes for smokers.
Shares of the Marlboro maker rose 3% in early trade after the company said it expected to use the cash from the sale for additional share repurchases
Altria has been developing its line of dipped tobacco, nicotine pouches and other smokeless oral tobacco products as the popularity of cigarettes has declined in the U.S., especially among young adults.
But its biggest bet on cigarette alternatives — a $12.8 billion investment in e-cigarette maker Juul Labs — plummeted in value as regulatory scrutiny of vaping products increased.
Ste. Michelle Wine Estates, which sells wine in Washington state, Napa Valley and other parts of the U.S., became part of Altria when Altria bought smokeless tobacco company UST for $10.4 billion in 2008.
“We believe this transaction is an important step for Altria to create value for shareholders and allows our management team to be more focused on pursuing our vision of responsibly transforming adult smokers into a future that doesn’t burn,” said Altria CEO Officer Billy Gifford said.
The sale, expected to close in the second half of 2021, is the second deal announced Friday involving a big tobacco company.
Earlier in the day, Philip Morris International (PM.N) agreed to buy British drugmaker Vectura (VEC.L) for 1.05 billion pounds ($1.44 billion).
Sycamore specializes in retail investments, with stakes in regional department store operator Belk Inc, apparel brand Ann Taylor and online specialty retailer Hot Topic.
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