Houchens Industries is selling Commonwealth Brands Incorporated.
Commonwealth Brands is the maker of the discount cigarettes USA Gold. Imperial Tobacco Group purchased the company for $1.9 billion.
Houchens officials say the move will help both companies grow in the long run.
"It provides a great opportunity for the shareholders here at houchens industries. It also provides a unique opportunity for commonwealth employees to expand their business platform," says Houchens Industries representative, Alan Larsen.
Houchens purchased Commonwealth Brands in 2001.
Commonwealth Brands is the fourth largest cigarette producer in the United States.