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Tobacco outfit


(UVV) - Get Universal Corp Report

said Friday it completed the sale of the nontobacco businesses of its Deli Universal unit for $401 million in cash.

The businesses were sold to a new company owned by NIBC Principal Investments, NPM Capital N.V., and managers of Deli's non-tobacco businesses.

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Cash proceeds will be used to reduce debt; the board will consider the possibility of resuming the company's share repurchase program.

The company expects to record a loss of about $25 million on the transaction, in the second quarter of fiscal year 2007.

Deli's non-tobacco businesses include lumber and building products distribution and agri-products operations, including rubber and food trading, tea, and sunflower seeds. The company is retaining its dried fruits and nuts business in the U.S. and London.

The revenues of businesses were $1.4 billion in the fiscal year ended March 31.

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