E. & J. Gallo Announces Purchase Of Napa Winery
16 Dec 2015 --- E. & J. Gallo Winery (Gallo) announced that it has agreed to purchase The Ranch Winery, a custom crush winery specializing in both small and large scale production in St. Helena, California.
Located within 15 miles of Gallo's Louis M. Martini and William Hill wineries, The Ranch Winery sits between Highway 29 and the Silverado Trail, making it an ideal location. The property spans more than 70 acres, with a winery facility capable of crushing 30,000 tons of grapes.
In addition to the crush capacity, the acquisition includes 4.6 million cases of bottling capacity and approximately 8 million gallons of storage. Gallo already owns fourteen wineries strategically located in wine regions throughout California and Washington, and this latest purchase supports the company's desire to have additional premium and luxury capacity in the Napa Valley. As part of the agreement, Gallo will honor all contracts with existing Ranch Winery customers.
According to Roger Nabedian, Senior Vice President and General Manager of Gallo's Premium Wine Division, "We are excited to have this highly capable winery in close proximity to our other Napa wineries. This purchase supports the company's continued growth in the super premium and luxury wine segment." He added, "We look forward to integrating The Ranch Winery into our premium wine strategy and working with the existing customers."
Demeter Group, a San Francisco-based investment bank for beverage alcohol companies, acted as The Ranch Winery's exclusive financial advisor on the transaction. Terms of the deal were not disclosed. The sale is scheduled to close on December 31, 2015.
