NAPA VALLEY -- Chappellet Vineyard & Winery in eastern Napa Valley today announced the acquisition of former diplomat John Loeb Jr.'s 38-year-old Sonoma-Loeb label, which has been made at Chappellet for two decades.

"It’s almost a cliche to talk about a winery sale being a 'natural fit,' " said Cyril Chappellet, owner and managing director. "In this case it couldn't be more true."

Phillip Corallo-Titus, longtime winemaker for Chappellet and Sonoma-Loeb, will continue to make the both wines. Other terms of the deal weren't disclosed.

"After a long and satisfying run in the wine industry, I am delighted that Chappellet has decided to buy the company, and along with our great winemaker, Phillip Corallo-Titus, carry on the Sonoma-Loeb tradition we have built together," said Mr. Loeb, who founded the 8,000- to 9,000-case-a-year Sonoma-Loeb brand in 1973. He was U.S. ambassador to Denmark in the early 1980s then a delegate to the United Nations.

Ambassador Loeb approached the Chappellet family in the past few months about the sale. This was the first acquisition in Chappellet's 44-year history, and the winery is not actively pursuing others, according to the family.

Sonoma-Loeb wines are made from Sonoma County and Los Carneros chardonnay and Russian River Valley pinot noir, and grape sources will remain the same. The wines retail for $20 to $40 a bottle.

Chappellet makes Pritchard Hill estate and Napa Valley cabernet sauvignon wines retail for $48 to $170 a bottle as well as a $32-a-bottle Napa Valley chardonnay.