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LVMH Moet Hennessy (OTCPK:LVMHF) inked a deal to acquire California wine-maker Joseph Phelps Vineyards for an undisclosed amount.
The agreement includes the brand, winery and inventory of the Napa Valley wine giant, as well as several hundred acres of vines in Napa Valley and Sonoma County.
Joseph Phelps Vineyard is well known for its red table wines and premium Insignia label.
Moet Hennessy Chairman Philippe Schaus said Phelps is an iconic name and an iconic winery. "It's important for us that we are acquiring a family business with a legacy and heritage. It's super important that we keep that heritage," he noted.
LVMH already has a number of wine brands in its cellar, including Champagne's Krug, Bordeaux's Château Cheval-Blanc, Burgundy's Clos des Lambrays, Spain's Bodega Numanthia and New Zealand's Cloudy Bay. In Napa Valley, it owns Newton Vineyard and has a majority stake in Colgin Cellars.
LVMH has been on the radar of Seeking Alpha authors, with three Buy recommendations issued in the last ten weeks for the growth potential.