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Sale of Chateau Montelena Winery canceled

CALISTOGA, Nov. 5, 2008 -- The Barrett family that owns Chateau Montelena Winery today said it terminated an agreement to sell the 127-year-old vintner to French hospitality mogul Michel Reybier.

On July 22, the Barrett family announced it entered a sale agreement to sell the facility to Reybier Investments, which owns Chateau Cos d'Estournel in the Bordeaux winegrowing region of France. The sale was expected to close in October. The price considered reportedly was $110 million.

Chateau Montelena managing general partner Jim Barrett today said the family, which has owned the winery since 1972, terminated the agreement because Reybier was not able to meet its obligations under the agreement.

"The process that just ended did not result in the outcome we or Mr. Reybier desired," Mr. Barrett said in a statement.

Mr. Barrett, Managing Director Greg Ralston, winemaker Cameron Parry and vineyard manager Dave Vella continue to run the operation.

Winery spokesman Jeff Adams said the reasons for the termination of the agreement were part of private negotiations, but the global financial situation including swinging currency exchange rates may have been involved.

"That was certainly part of the backdrop," Mr. Adams said.