Altria rises on sale of wine unit for $1.2 billion, considers using proceeds for buybacks

Dhirendra Tripathi

investing. com – Altria (NYSE: MO) rose 0.5%. Company, St. Michelle Wine Estates has decided to sell its arm to Sycamore Partners for $1.2 billion and focus on tobacco and other works.

The fact that the company could use the proceeds to increase share buybacks also contributed to the rise in prices.

The private equity firm, which specializes in consumer, retail and distribution investments, will assume some of Ste Michelle’s obligations as part of the contract, as well as paying the money.

Altria expects the process to close in the second half of 2021, subject to Sycamore Partners securing the necessary funding and fulfilling the terms of the classic agreement, including antitrust regulatory clearance.

Altria does not expect any gains or losses in the process and related savings items in the second half of 2021. Altria said none of this was considered valuable to the company.

The maker of Marlboro cigarettes and the JUUL brand of e-cigarettes plans to subtract the amounts from adjusted diluted earnings per share. Altria said it did not expect to take into account Ste Michelle’s results.

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