CASELLA Family Brands is set to take over Peter Lehmann Wines.
The aquisition will strengthen the Casella brand and "give us a footprint in the Barossa", according to Casella Family Brands managing director John Casella.
"The proposed acquisition of Peter Lehmann Wines by Casella Family Brands plays an integral role in building a family of quality brands across a range of segments," Mr Casella said.
"With our strong global footprint we are excited by the prospects and opportunities ahead for the business."
Mr Casella said the purchase was a natural progression for for the company.
"The products complement what we have and we're always looking at ways to expand the Casella name and Casella range. It accelerates the whole process of having a range of premium wines," he said.
Mr Casella said the proposal was an offer of $1.50 per share to acquire 100 per cent of oustanding shares in Peter Lehmann Wines.
He said Peter Lehmann Wines majority shareholder The Hess Group Australia Pty Ltd and substantial shareholder Margaret Lehmann currently intended to accept the offer in respect of their holdings.
"It's very important for us to have that footrprint in the Barossa and a credible one at that," Mr Casella said.
"It's an exciting time for the Casella family and the Griffith region."
Mr Casella said the company outlook looked good.
"It's all been positive for us we've maintained our sales volumes and the brewery is going quite well," he said.
Peter Lehmann Wines chairman Christoph Ehrbar said the board had evaluated the proposal and was confident that John Casella and his team were fine custodians of Peter Lehmann's legacy.
"Casella Family Brands is an Australian family owned success story with the vision and expertise to continue the development of this important South Australian wines business," Mr Ehrbar said.
Sign up for our newsletter to stay up to date.