E&J Gallo Winery announced a deal Tuesday to expand its Central Coast holdings by acquiring Edna Valley Vineyard.
The San Luis Obispo winery, known primarily for its chardonnay, is owned by a joint venture between Diageo Chateau & Estate Wines Co. and Paragon Vineyard Co.
Financial terms were not disclosed. Gallo will continue to partner with Paragon as a source of grapes for the Edna Valley brand.
The acquisition will give Gallo a larger presence on the Central Coast. In 2004, the Modesto wine giant purchased Bridlewood Estate Winery in Santa Barbara County.
"Edna Valley will help us expand both our footprint in the Central Coast and in the chardonnay category. The brand represents wines from a superior appellation and is well positioned to offer consumers wines of extraordinary value long into the future," Roger Nabedian, senior vice president and general manager of Gallo's Premium Wine Division, said in a statement.
Editor's Note: Edna Valley Vineyard was co-founded by Chalone Wine Group and Paragon Vineyard Co. An earlier version of this story incorrectly stated that Diageo Chateau & Estate Wines Co. was a co-founder.