UST Inc.

UST Inc. was an American holding company best known for its large smokeless-tobacco business. Its principal operating tobacco subsidiary was U.S. Smokeless Tobacco Company, whose Copenhagen and Skoal brands made UST one of the most prominent producers of moist snuff and other smokeless-tobacco products in the United States. The company also controlled wine-related assets, including Chateau Ste. Michelle Wine Estates, through International Wine & Spirits Ltd. The business traces its institutional history to the United States Tobacco Company, established in 1911 in Richmond, Virginia, during the period following the United States Supreme Court's dissolution of the American Tobacco Company trust under antitrust law. A predecessor or related entity, Weyman-Bruton Company, acquired the United States Tobacco Company in 1921 and adopted the United States Tobacco Company name the following year. The organization later moved its headquarters from New York City to Greenwich, Connecticut, in 1970. In 1986 it created the UST holding-company structure, and in 2006 announced plans to move its headquarters from Greenwich to nearby Stamford. UST's core commercial identity was built around smokeless tobacco rather than cigarettes. Its products included moist snuff and chewing tobacco, distributed primarily in the United States through established retail channels. In the third quarter of 2006, Morningstar reported that UST held 62.4 percent of the American smokeless-tobacco market. The company's main competitors included the American Snuff Company business associated with Reynolds American and Swedish Match. UST operated manufacturing facilities in Nashville, Tennessee; Hopkinsville, Kentucky; and Franklin Park, Illinois. Although tobacco remained its defining business, UST had a broader corporate history. It acquired Circus Foods in 1959, adding a confectionery connection, and operated entertainment businesses during the 1980s and 1990s, including Cabin Fever Entertainment, Razzmatazz Entertainment, and Cabin Fever Films. These video and film operations were folded into Hallmark Home Entertainment in 1998. UST also owned vineyards in Washington State and California through its wine interests. In 2006, UST announced a leadership transition: president and chief operating officer Murray S. Kessler was promoted to chief executive officer effective January 1, 2007, while Vincent Gierer Jr., who had served as chief executive since 1993, remained chairman. The company reported an average workforce of 5,111 employees in 2005 and described itself as a substantial publicly traded consumer-products business at that time. UST's independence ended when Altria acquired all of its outstanding shares. The transaction became effective on January 6, 2009, with UST shareholders entitled to receive $69.50 in cash for each common share, subject to applicable withholding. After the acquisition, UST became part of Altria's corporate portfolio. The UST name therefore represents both a historical tobacco company and a corporate structure whose principal brands and assets were absorbed into a larger tobacco and consumer-products group.

UST's history begins in 1911, when the United States Tobacco Company was established in Richmond, Virginia, after the Supreme Court's antitrust action against the American Tobacco Company trust. The company's later corporate lineage ran through Weyman-Bruton Company, which acquired the United States Tobacco Company in 1921 and changed its name to United States Tobacco Company in 1922. The business moved its headquarters from New York City to Greenwich, Connecticut, in 1970. In 1986, the modern UST holding-company structure was created. The company subsequently operated through subsidiaries, most importantly U.S. Smokeless Tobacco Company, the producer and marketer of its principal smokeless-tobacco brands. UST also held International Wine & Spirits Ltd., which in turn controlled Chateau Ste. Michelle Wine Estates and related premium-wine assets. The company's central business was the manufacture and sale of smokeless tobacco, especially moist snuff and chewing tobacco. Production facilities were located in Nashville, Tennessee; Hopkinsville, Kentucky; and Franklin Park, Illinois. Copenhagen and Skoal were its best-known brands, and UST held a reported 62.4 percent share of the United States smokeless-tobacco market in the third quarter of 2006, according to Morningstar as cited in the company's reference material. Its principal competitors included the American Snuff Company business of Reynolds American and Swedish Match. UST also pursued businesses outside tobacco. In 1959 it acquired Circus Foods, a San Francisco company connected with the Euclid Candy Company. During the 1980s and 1990s, UST operated Cabin Fever Entertainment, Razzmatazz Entertainment, and Cabin Fever Films. The video and film operations were folded into Hallmark Home Entertainment in 1998. The company additionally owned vineyards in Washington State and California. In 2006, UST announced that it would move its headquarters from Greenwich to Stamford. It also announced a senior-management succession: Murray S. Kessler, then president and chief operating officer, would become chief executive officer on January 1, 2007, while Vincent Gierer Jr. would remain chairman. UST's independent corporate existence ended when Altria completed its acquisition of the company on January 6, 2009. The deal was structured as an all-cash purchase of the outstanding shares, after which UST became an Altria subsidiary.

• 2009

  Altria acquires UST

  [1]UST Inc.en.wikipedia.org

  Altria's acquisition of all outstanding UST shares became effective on January 6, 2009.

• 1998

  Entertainment subsidiaries are folded into Hallmark Home Entertainment

  [1]UST Inc.en.wikipedia.org

  Cabin Fever Entertainment and Razzmatazz Entertainment ceased operating as separate UST video businesses and were folded into Hallmark Home Entertainment.

• 1986

  UST holding company is created

  [1]UST Inc.en.wikipedia.org

  The UST holding-company structure was established.

• 1970

  Headquarters moves to Greenwich

  [1]UST Inc.en.wikipedia.org

  The company relocated its headquarters from New York City to Greenwich, Connecticut.

• 1959

  Acquisition of Circus Foods

  [1]UST Inc.en.wikipedia.org

  United States Tobacco Company acquired Circus Foods, expanding its historical interests beyond tobacco.

• 1922

  Corporate name changes to United States Tobacco Company

  [1]UST Inc.en.wikipedia.org

  Weyman-Bruton adopted the United States Tobacco Company name after the acquisition.

• 1921

  Weyman-Bruton acquires the company

  [1]UST Inc.en.wikipedia.org

  Weyman-Bruton Company acquired the United States Tobacco Company.

• 1911

  United States Tobacco Company is established

  [1]UST Inc.en.wikipedia.org

  The United States Tobacco Company was established in Richmond, Virginia, during the breakup of the American Tobacco Company trust.

A traditional American smokeless-tobacco company with market-leading moist-snuff brands and ancillary wine holdings.

• Moist snuff and smokeless tobacco

  Copenhagen

  Copenhagen was one of UST's principal smokeless-tobacco brands and a central part of the company's American moist-snuff portfolio. It helped establish UST's identity as a specialist in traditional oral tobacco products rather than cigarette manufacturing.

• Moist snuff and smokeless tobacco

  Skoal

  Skoal was a major UST smokeless-tobacco brand, associated with moist snuff products sold in the United States. Together with Copenhagen, it represented the company's most recognizable consumer-facing tobacco offering.

• Premium wine

  Chateau Ste. Michelle

  Chateau Ste. Michelle was the principal wine business connected to UST through International Wine & Spirits Ltd. The business represented UST's diversification into vineyards and premium wine production in Washington State and California.

• 2009

  Altria acquisition of UST Inc.M&A

  Background

  Altria pursued the acquisition of UST and its smokeless-tobacco and wine-related assets.

  Action taken

  The transaction became effective on January 6, 2009. UST shareholders were entitled to receive $69.50 in cash for each common share, subject to applicable withholding.

  Aftermath

  UST became a subsidiary of Altria and no longer operated as an independent publicly traded company.

  Cash consideration per UST common share. $69.50 (Transaction effective January 6, 2009)

  Source

• 2006

  Move headquarters from Greenwich to StamfordStrategy

  Background

  UST announced a planned relocation of its headquarters within Connecticut as part of its corporate administration strategy.

  Action taken

  The company planned to move its headquarters from Greenwich to Stamford.

  Aftermath

  UST's independent corporate structure was later absorbed into Altria following the 2009 acquisition.

  Source

1. 1UST Inc.en.wikipedia.org