Allied Vintners May Buy William Hill Wine Co.

Hiram Walker-Allied Vintners, a subsidiary of a giant British drinks company, has signed an option to buy the William Hill Wine Co. in the Napa Valley, it was announced Friday.

William Hill, who founded his winery in 1976, said the U.S. subsidiary of Allied Lyons PLC signed a three-year option to buy the company, including 500 acres of prime vineyard land, 350 acres of Carneros Chardonnay grapes and 150 acres of Mount Veder Cabernet Sauvignon.

A spokesman for Hiram Walker said the company is “interested in the high end of the premium wine market, and William Hill has established that reputation.”

The initial part of the deal, Hill said, calls for Hiram Walker to provide about $36 million for the Carneros property, to complete construction of a winery and for working capital.

Within three years, Hill said, Hiram Walker can complete the purchase for an additional $36 million.

In the meantime, Hill said, the Wine Alliance, Hiram Walker’s U.S. marketing company for American-made wines, immediately will take over marketing of the William Hill wines.

Allied Lyons recently acquired the wine and spirits division of Whitbread PLC and Clos du Bois Winery in Sonoma. It has held the Callaway Winery in Temecula for a decade.