UK drinks firm Diageo has divested Chalone Estate Vineyard to California-based Foley Family Wines, as part of its plan to exit the wine segment in the US.

Chalone Vineyard is the final business to be divested from Diageo’s US wine portfolio. Foley Family Wines is also purchasing about 1,000 contiguous acres, with 240 acres planted to vine.

The acquisition expands Foley’s portfolio of wine estates. The company has estates in California, Washington state and New Zealand.

Foley Family Wines owner Bill Foley said: “We have incredible wineries and vineyards stretching from Lincourt in Solvang, California up to Three Rivers in Walla Walla Washington”

“Chalone Estate Vineyard, with its great wines and incredible history, gives our consumers and guests world class wine options along the entire coast.”

Diageo has been divesting its wine brands since it agreed a £361m sale of the majority of its wine division to Treasury Wine Estates.

The sale included its Chateaux & Estate Wine business in the US and Percy Fox brand in the UK.

Other brands such as Piat d’Or, Blossom Hill and Sterling Vineyards are also included in the deal.

Treasury Wine estates initially rejected the offer to buyChalone Estate Vineyard, which was left out of initial deal.

Diageo acquired the Chalone winery for $260m in 2004.