Benzinga | Jul 9, 2021 10:13AM EDT

Altria Group Sells Ste. Michelle Wine Estates Business For $1.2B

* Altria Group Inc's (NYSE:MO) subsidiary, UST LLC, has agreed to sell its Ste. Michelle Wine Estates business to Sycamore Partners Management, L.P. in an all-cash transaction with a purchase price of $1.2 billion, plus certain liabilities.

* Altria expects this transaction to close during the second half of 2021.

* Altria expects to record any gain or loss on this transaction and related disposition items, which it does not anticipate being material, in the second half of 2021.

* Altria does not expect to account for the results of Ste. Michelle as discontinued operations.

* Altria plans to use this sale net proceeds for additional share repurchases.

* Altria's cash and equivalents totaled $5.79 billion as of March 31, 2021.

* Price action: MO shares are trading higher by 2.72% at $47.66 on the last check Friday.