Gruppo Campari have announced that it has reached an agreement for the disposal of the French Château de Sancerre wine business to Maison Ackerman, the wine division of Terrena, a France based company with diversified interests in the agriculture industry.

The enterprise value is €20.5 million ($22.9 million). The sold business consists of the Sancerre wines as well as buildings, vineyards, vinification, production plants and inventory.

In the fiscal year ended 31 December 2016 the Château de Sancerre winery achieved total sales of €3.5 million ($3.9 million).

Pursuant to the local legislation, the transaction, which has received the approval of the SAFER, the local body for the development of land, is subject to a final administrative authorization. The transaction will be closed once such authorization is obtained.

The Château de Sancerre winery spans over 55 hectares of vineyards and its portfolio is comprised of highly acclaimed wines from the Loire Valley in France. The winery was founded in 1919 by Louis-Alexandre Marnier Lapostolle, the creator of Grand Marnier liqueur, and entered into Gruppo Campari’s perimeter in the context of the Grand Marnier acquisition completed in June 2016.

Bob Kunze-Concewitz, Chief Executive Officer-Gruppo Campari said: “With the disposal of the Sancerre winery, which follows the sale of the Italian and the Chilean still wine businesses, finalized over the last year, Gruppo Campari fully exits the still wine business, thus continuing to streamline its non-core activities and increasing its focus on the core spirits business. Since the beginning of 2016 we have divested non-core assets for a total value of approximately €117 million ($131 million).”