Investment firm Georgia Capital’s Wine Business has acquired a 100% stake in Georgian wines and spirits producer Alaverdi.

Financial details of the deal are yet to be divulged by either company.

Alaverdi owns and operates 244h of vineyards in the Kakheti region. Most of them grow Georgia’s flagship red wine grapes, Saperavi.

The deal will provide the Wine Business with immediate access to the 135h of free land for vineyard development.

Alaverdi harvests Georgia’s wine categories on the domestic and international markets in micro-zones that occupy 82ha of the company’s vineyards.

Georgia Capital chairman and CEO Irakli Gilauri said: “The acquisition of Alaverdi is a truly compelling opportunity, which provides a clear and attractive value creation potential through cost synergies and the addition of a substantial base of high-quality vineyards.

“Following the acquisition, the Wine Business will have three top-class wineries across Kakheti’s three wine-making regions with significantly enhanced production capacity.

“This footprint should allow the Wine Business to access a bigger share of export markets, while also capitalising on the growing wine tourism in Georgia.”

The deal is expected to further enhance Georgia Capital’s Wine Business production capacity from 9.4 million to 28.4 million wine bottles per annum.

Upon completion of the transaction, Wine Business will own 695h of vineyards with additional 180h of free land available for the immediate development of the vineyard.

The deal is said to be in line with Wine Business’ target of creating a 1,000ha of vineyard base.

Additionally, the business anticipates that the deal will help in producing red wines with mostly self-harvested grapes.