Santa Rosa's Vintage Wine Estates announced a deal to purchase its third North Bay wine company in 10 months, acquiring Canopy Management Wine Company.
The deal will push Vintage Wine Estates sales past the 1 million case mark, President Pat Roney said Friday. The company continues to seek new growth opportunities and hopes to double its business over the next four years, he said.
"The wine industry has a lot of upside potential and potential for continued growth," Roney said.
Last fall Vintage Wine Estates purchased Viansa Winery south of Sonoma. In August it bought Clo Pegase Winery in Calistoga.
Canopy, the latest acquisition, is a Napa wine marketing company founded in 2008 that now sells 300,000 cases annually, Roney said. Its 10 brands, led by Middle Sister, are targeted primarily at women.
While Vintage Wine Estates doesn't release total revenue, Roney said the Canopy purchase will add $20 million in sales.
Financial terms were not disclosed. The sale is expected to close July 1.
The privately-held company currently owns eight wine companies in Sonoma, Napa and Mendocino counties, including Girard Winery, Cosentino Winery, Windsor Vineyards, Sonoma Coast Vineyards, Cartlidge & Browne Winery and Ray's Station.
The acquisition will broaden the pricing of Vintage Wine Estates' portfolio of brands, nearly all of which cost more than $15 a bottle, Roney said. Canopy has a number of wines for $10 to $12 a bottle.
As well, the purchase will help the company expand distribution into such retailers as Target, Safeway and Kroger.