Lassonde invests $7 million in Diamond Estates winery

Lassonde is investing approximately $7 million in Diamond Estates
Wines & Spirits, for a 20% interest in the Niagara-on-the-Lake, Ont. venture.

The private placement was "completed for business and investment purposes," the agri-food company said in a press release announcing the deal, and is accompanied by a measure that sees Lassonde become the exclusive representative of Diamond Estates at certain retailers, including Canadian grocery and convenience stores.

The two companies also entered into an investor rights agreement, giving Lassonde the right to nominate two of seven directors to the Diamond Estates board.

Diamond Estates is the third largest producer of Ontario VQA wine.

Lassonde, which markets the Oasis, Apple & Eve, Everfresh and Fairlee brands, operates 15 plants in Canada and the United States and employs nearly 2,200 people.