US-based global asset manager Carlyle is buying Australia’s second largest wine producer Accolade Wines for A$1bn ($772m) from Champ Private Equity and Constellation Brands.

Accolade Wines was created by Champ Private Equity in 2011 after it bought and merged two wine businesses owned by Constellation Brands for three times less than Carlyle’s payment. Champ Private Equity owns an 80% stake and Constellation Brands owns the remaining 20%.

Carlyle said in a statement: “This is a company with great brands and strong market positions, with multiple growth opportunities, particularly in Asian markets.”

The recent boom in Australia’s wine sector has been primarily driven by exports to China which have increased by 63% in 2017 to reach $651m. This made China Australia’s largest wine export market and Australia China’s second largest wine import market behind France.

Growth has been helped by a free trade agreement between Australia and China signed in 2015 that reduced tariffs on wine from 20% to 3%.

LGB Corporate Finance managing director Angus Grierson said: “The deal will help cement Accolade’s well-established brands in the Asian region, enabling the business to further capitalise on the increasing Chinese middle class demand for wine.

“The value of wine exports to mainland China grew by 63% in 2017 and if US wines are subjected to higher tariffs when imported into China, it would directly benefit Australian companies, like Accolade, knocking on China’s front door to capitalise on a growing market.

Carlyle has a longstanding presence in Asia with on the ground offices in China and will be well positioned to continue Accolade’s success in the region.”

This is Carlyle’s second Australian acquisition in the past year. Alongside Pacific Equity Partners, it bought iNova Pharmaceuticals for $930m.

Founded in Washington but now with 31 offices worldwide, other consumer brands in the asset manager’s portfolio include Alamar Foods, Dr Pepper Snapple Bottling Group, Carroll Cuisine and Tirumala Milk Products.

Accolade Wine’s portfolio includes Australian brands from across 20 of the country’s premium wine-producing regions, including Hardys and Banrock Station, as well as brands from New Zealand, Chile, North America, South Africa, the UK and Italy such as Echo Falls, Gran Tierra and Kumala.