Crimson Wine Group (OTCQB: CWGL) has purchased the Seven Hills Winery in Walla Walla for $5.75 million.

Seven Hills was founded in 1988 by Casey McClellan, the winemaker, and his wife, Vicky. It was the fifth winery in Walla Walla at the time.

Casey McClellan was a fourth-generations farmer who planted the Seven Hills Vineyard with his father, Jim McClellan in 1982. The family’s history of farming in Eastern Washington dates back nearly 100 years.

Through its 28-year history, Seven Hills has established history of producing award-winning Merlot and Bordeaux-style red blends.

The acquisition of Seven Hills Winery provides Crimson with a strategic opportunity for the company to expand its portfolio to include a historic Walla Walla winery with an enviable track record of producing highly-acclaimed wines.

Several family members will remain involved in the winery operations, including winemaker Casey McClellen and Vicky McClellen.

“Joining the Crimson portfolio is an exciting and logical next step,” said Casey McClellan, in a prepared statement. “It was critical to our family to transition Seven Hills Winery into the right hands, and Crimson’s commitment to producing quality wines from the best-of-class vineyards and wine estates is well aligned with our philosophy. We are confident Crimson will preserve the integrity of what my family has built over the years, while providing the resources to take our wines to the next level.”

Since its inception, Seven Hills Winery has cultivated long-term relationships with top growers to establish an exceptional vineyard program. The winery currently sources fruit from several of Washington’s marquee vineyard sites, including Seven Hills Vineyard and McClellan Estate Vineyard in the Walla Walla Valley and Ciel du Cheval and Klipsun on red Mountain.

“We are constantly evaluating the market for the right growth opportunities and fit, and Seven Hills Winery is a strategic match for Crimson,” said Patrick DeLong, president and CEO of Crimson. “The acquisition of Seven Hills Winery is complementary to the Crimson mission and portfolio, adding a high-quality growing region that excels in the production of Merlot and Bordeaux-style red blends. We see significant opportunities for growth and we’re honored that Casey and Vicky have entrusted us to care for this historic Washington wine estates moving forward.”

Under the terms of the purchase agreement, Crimson will pay $5.75 million for the winery, including $5 million in cash and up to $750,000 in future payments, based on certain achievements over the 38 months following the closing of sales.

The transition of the winery’s operations remains subject to federal and state regulatory approvals.

Based in the Napa Valley, Crimson Wine Group specializes in handcrafted, estate-grown wines originating from the highest quality wine regions in the U.S. Crimson owns and manages more than 895 acres of vineyard land across five distinct regions. Crimson’s collection of wine brands includes Pine Ridge Vineyards of Napa, Calf., Seghesio Family Vineyards of Healdsburg, Calif., Archery Summit of Dayton, Ore., Chamisal Vineyards of San Luis Obispo, Calif. and Double Canyon of Prosser.