Southern Premium Vineyards (SPV) will acquire 7215 hectares of Casella properties across New South Wales and South Australia.
SPV, which is owned by Canadian pension fund PSP Investments, will take on the management of 35 Casella vineyards and associated employees.
Casella Family Brands Managing Director, John Casella, said SPV is an investor with a proven record of success.
“We are confident that SPV will continue to deliver the quality and consistency of the grapes we require, safeguard and preserve the vineyards and ensure the wellbeing of employees,” he said.
The deal has been approved by the Foreign Investment Review Board.
SPV already owns 460 hectares of vineyards in the Coonawarra and Barossa Valley regions of South Australia and has entered into a long-term grape supply agreement with Casella.
SPV Director, Nick Gill, said the supply deal forms part of the company’s strategy.
“[Our] strategy is to offer wine companies a multi-regional grape supply solution for their wine grape sourcing as an alternative to owning or leasing vineyards and a partnership with Casella is a perfect fit with this strategy,” he said.
Casella is Australia’s largest family-owned winery and has plans to grow its wine business in Australia and internationally. Its flagship brand [yellow tail] accounts for approximately 17 per cent of all Australian exported wine.
In 2014, Casella took over Peter Lehmann Wines in a $57m deal.