Napa, Calif.—Hess Family Wine Estates (HFWE) announced its plans to accept an offer by the Australian firm Casella Family Brands to buy Peter Lehmann Wines of Tanunda, South Australia. Timothy Persson and Christoph Ehrbar, managing directors of Hess Family Wine Estates, said in a statement they believe the Peter Lehmann sale is a positive development for all parties involved. “This is a time of transition, with the passing of founder Peter Lehmann and the retirement of long-time winemaker Andrew Wigan,” Ehrbar said. “Casella’s investment in PLW will further unlock the full potential of Peter Lehmann while allowing HFWE to invest primarily in its California brands.”

Cassella Family Brands' offer is for $1.50 per share, which amounts to $49.6 million (USD). Hess paid more than $100 million for the Australian winery in 2003. Cassella Family Brands is also the producer of Yellow Tail. 

Persson noted that HFWE has been sharpening its focus on key brands and leading markets, with primary emphasis on the Americas, following an in-depth strategic review to guide the company’s future growth. The deal will provide a “robust foundation” for HFWE’s plans to conduct an $18 million replanting of its estate vineyards at the Hess Collection Winery on Mount Veeder in the Napa Valley as well as a major packaging redesign for the entire Hess Collection portfolio.