Wirra Wirra, a family-owned winery in Australia, has entered an agreement to acquire local Adelaide Hills producer Hahndorf Hill.

Financial terms of the deal were not disclosed.

In a statement, South Australia-based Wirra Wirra said the purchase adds “depth” to its foothold in the Adelaide Hills.

The move follows its acquisition of Ashton Hills, also situated in the Adelaide Hills regions, a decade ago.

Founded in 2002 by Larry Jacobs and Marc Dobson, Hahndorf Hill produces Austrian wine varietals for the Australian market including Grüner Veltliner, Blaufränkisch, and Zweigelt.

The winery's six-hectare estate, located just outside the village of Hahndorf, also houses a tasting room.

Its portfolio includes four types of Grüner Veltliner, a 12-variety white field blend, rosé, Pinot Grigio, Shiraz, and limited-production reds such as Blaufränkisch, St. Laurent, and Zweigelt.

Hanhdorf's wines are currently sold nationwide in Australia, distributed by Domaine Wine Shippers.

The winery's export business is "negligible", Wirra Wirra MD and CEO Matthew Deller told Just Drinks, but added that the company had plans "to introduce Hahndorf Hill's beautiful wines to markets around the world".

In a separate statement, Deller said: "At a time when the Australian wine industry is facing real challenges, we’re choosing to invest in quality, authenticity and long-term growth.

“Larry and Marc have created something truly special. Hahndorf Hill fits perfectly with our vision for the future.”

Hahndorf's founders Jacobs and Dobson will step down from the business and retire from the wine industry after the transition is complete, with Deller stepping in to lead the winery, alongside the Wirra Wirra and Ashton Hills brands.

“This is not only a proud moment for the Adelaide Hills - it’s a sign that Australian cool-climate white wines can compete with the very best globally,” Deller added.

Wirra Wirra operates vineyards in the Adelaide Hills wine region and manages several organic and biodynamic-certified blocks. Its portfolio includes the Farmer’s Heart Grenache and Church Block Cabernet Sauvignon under the Wirra Wirra label, as well as Ashton Hills' range of Chardonnay, Riesling and Pinot Noir wines.

In 2023, Wirra Wirra signed a US distribution agreement with E&J Gallo, appointing the American wine giant as its exclusive importer.