US-based E & J Gallo Winery is set to acquire one of Sonoma County’s oldest wineries, the Asti Winery from Australia’s Treasury Wine Estates (TWE).

TWE said that the company will book a pre-tax loss on disposal of the winery group of about $7.5m.

As part of the transaction, Gallo will purchase the Asti Winery, comprised of 535 total acres within the Alexander Valley, with 275 acres planted to vineyard.

The company will also acquire Souverain brand, which produces Chardonnay, Sauvignon Blanc, Merlot and Cabernet Sauvignon.

The Asti Winery, which was established in 1881, is located in the northern part of the Alexander Valley and was formerly known as Italian Swiss Colony.

Producing various types of wines from numerous local vineyards, the Asti Winery is spread over an area of over 500 acres with a winery facility that has the capacity to crush 35,000t of grapes.

E & J Gallo Winery Premium Wine Division senior vice president and general manager Roger Nabedian said: "We are thrilled to add the Asti Winery and vineyards to our North Coast fine wine operations.

"We look forward to bringing the Souverain brand into our expanding premium portfolio, in order to keep pace with growing consumer demand worldwide."

The latest acquisition will enable Gallo to expand its footprint in Sonoma County.

The company already owns 12 wineries that are located in wine regions throughout California as well as Washington.

According to Gallo, the sale is slated for completion on 31 July 2015.

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Source:

E. & J. Gallo Announces Purchase of Historic Sonoma County Winery

http://www.businesswire.com/news/home/20150720006466/en/E.-J.-Gallo-Announces-Purchase-Historic-Sonoma#.Va4d5bUkLB0

http://www.tweglobal.com/2015/07/21/twe-announces-agreement-for-sale-of-asti-winery/

E. & J. Gallo Winery (Gallo) announced today that it has agreed to purchase the Asti Winery, one of Sonoma County’s oldest and largest wineries. Located in the northern part of the Alexander Valley, the Asti Winery was established in 1881 by Italian immigrant Andrea Sbarboro. Known then as Italian Swiss Colony, Asti Winery was communally owned by many local families, producing a variety of wines from numerous local vineyards. Today, the Asti Winery spans more than 500 acres with a winery facility capable of crushing 35,000 tons of grapes.

Gallo already owns twelve wineries strategically located in wine regions throughout California and Washington, and this latest purchase supports the company’s desire to have a larger presence in Sonoma County. The acquisition includes the Asti Winery, comprised of 535 total acres within the Alexander Valley, with 275 acres planted to vineyard. Additionally, the purchase includes the Souverain brand, which produces premium Chardonnay, Sauvignon Blanc, Merlot and Cabernet Sauvignon.

According to Roger Nabedian, Senior Vice President and General Manager of Gallo’s Premium Wine Division, "We are thrilled to add the Asti Winery and vineyards to our North Coast fine wine operations. The property is filled with rich history and is located in a growing wine region that consumers recognize as being among the world’s best." He added, "We look forward to bringing the Souverain brand into our expanding premium portfolio, in order to keep pace with growing consumer demand worldwide."

The sale is scheduled to close on July 31, 2015. Terms of the deal were not disclosed.