WOODINVILLE, Wash. — Ste. Michelle Wine Estates has been sold for about $1.2 billion to a private equity firm by its parent, the tobacco company Altria.
Woodinville-based Ste. Michelle describes itself as the nation’s third-largest wine company, farming nearly 30,000 acres across Washington, Oregon and California.
The company sells wines under labels including Chateau Ste. Michelle, 14 Hands, Columbia Crest, Erath, Intrinsic and Patz & Hall.
According to the Chateau Ste. Michelle website, the vineyard was founded on the Woodinville estate of Seattle lumber baron Frederick Stimson, originally built in 1912.
Since then, the company has expanded its operations to include vineyards in eastern Washington.
Chateau Ste. Michelle has helped give back to the community with a scholarship to support minority undergraduates, which was established in 2002.
Originally the fund supported minority students attending Washington State University and the University of Washington, but in 2009, the winery expanded the program to include students attending any college or university in Washington state.
Altria, which owns major cigarette brands such as Marlboro, said it will use the sale’s proceeds to buy back stock.
CEO Billy Gifford said shedding the wine company is part of its plan to focus on “moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices” like non-combustible nicotine products.