Silicon Valley-based private equity firm, GI Partners has added to its wine portfolio, and has agreed to acquire a majority stake in Napa Valley’s Far Niente Wine Estates for an undisclosed amount.

The deal includes the Far Niente winery as well as its sister brands, Dulce, Nickel & Nickel, EnRoute, and Bella Union, which combined, produce approximately 75,000 cases per year. Company founders, Beth Nickel and Erik Nickel, and senior management team members, Dirk Hampson and Larry Maguire will remain shareholders, while the established sales, marketing, and production teams will continue with the company according to Wine Spectator.

“We are thrilled that San Francisco-based GI Partners will be making an investment in Far Niente. With shared values and consistent vision, our new partnership clears the way for continued growth and improvement in our group of luxury wineries that we’ve been building since the re-establishment of Far Niente in 1979,” said Dirk Hampson, Director of Winemaking and Chief Executive Officer in a company statement.

Founded in 2001, GI Partners is a middle market private equity firm managing more than $12 billion in capital for institutional investors. Historically focused on technology and real estate, this deal is not GI’s first ag investment. The firm acquired a majority stake in Napa Valley-based Duckhorne wine company in October 2007.

Launched in 1976, Duckhorne is a vertically integrated multi-brand winery including 13 estate vineyards totaling 1,013 acres, four wineries in the Napa and Anderson Valleys, and three visitor centers with retail locations. The company was one of the first in California to produce luxury-tier wines on a commercial scale.

Far Niente was established in 1885 in Oakville, California, and saw years of success until Prohibition in 1919, at which point it was abandoned for the next 60 years. In 1979, Gil and Beth Nickel purchased the winery and vineyard, restoring the operation and crushing the first Far Niente Cabernet Sauvignon in 1982.

“When Gil and I first arrived in the Napa Valley in the 1970s, we felt incredibly lucky to acquire the jewel of Far Niente and bring it back to life. Over the years, we’ve worked hard to create a very special place to experience our wines and Napa Valley hospitality, with our personal touch. We look forward to continuing the stewardship of our legendary properties,” said Beth Nickel.

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Lynda Kiernan