The Duckhorn Portfolio Inc., a North American wine company, has entered into a definitive agreement to acquire a production winery and planted vineyards in Alexander Valley, Sonoma County, Calif.

The deal aims to expand the company’s production capacity and provide the company with an operational facility with winemaking equipment appropriate for premium wines. In addition to the production facility, the property also includes over seven acres of planted cabernet sauvignon. The purchase price of the transaction was approximately $55 million and will be financed through the company’s credit facility.

“We view this acquisition as an investment in our future growth and in our winery brands, a continuation of our long-term strategy of expanding and diversifying our luxury wine production capabilities,” says Alex Ryan, the president and CEO of the Duckhorn Portfolio. “Production wineries of this scale are rarely available in this area, and this acquisition reduces our reliance on third-party custom processing, storage and bottling, and further optimizes our production processes, supporting the stability of the company’s growth.”