Modesto, Calif.—E. & J. Gallo Winery announced it has agreed to purchase The Ranch Winery, a custom crush winery specializing in both small and large scale wine production in St. Helena, Calif.

Located within 15 miles of Gallo's Louis M. Martini and William Hill wineries, The Ranch Winery sits between Highway 29 and the Silverado Trail. The property spans more than 70 acres, with a winery capable of crushing 30,000 tons of grapes. 

In addition to the crush capacity, the acquisition includes 4.6 million cases of bottling capacity and approximately 8 million gallons of storage. "We are excited to have this highly capable winery in close proximity to our other Napa wineries. This purchase supports the company's continued growth in the super premium and luxury wine segment," said Roger Nabedian, Gallo's senior vice president and general manager of Gallo's Premium Wine Division in the statement announcing the purchase. 

The Trinchero family originally built the winery, and later sold it in 2007 to vitner Joel Gott and partners. At the time Gott had been producing his Three Thieves brand at the facility when he learned it was for sale. 

Demeter Group, a San Francisco-based investment bank for beverage alcohol companies, acted as The Ranch Winery's exclusive financial advisor on the transaction. Terms of the deal were not disclosed. The sale is scheduled to close on Dec. 31, 2015.