BANGALORE: Vijay Mallya-controlled McDowell & Company has acquired French wine maker Bouvet Ladubay SAS, the wine subsidiary of French champagne house Taittinger, from U.S.-based equity firm Starwood Capital for over Rs. 86 crore (14.75 million euro).

The UB group company plans to sell wine brands of the French firm in India. The domestic wine market is now dominated by imported brands though local wine makers are just beginning to make a mark.

The company said in a statement that the acquisition was made by its Mauritius-based wholly owned subsidiary, Asian Opportunities and Investments Ltd., and was funded through the proceeds of the GDR issue and internal accruals.

Following the acquisition, Bouvet Ladubay and its wholly owned subsidiary, Chapin Landais, have become wholly owned subsidiaries of Asian Opportunities and that of the company, the statement said.

Earlier, the UB group had shelved plans to buy Taittinger for Rs. 3,000 crore.

McDowell said it planned to introduce Bouvet Ladubay's wines to the emerging wine connoisseurs in India by either importing wines bottled in France or importing the wines in bulk for bottling locally. The company will also be able to use the French company's distribution network in Europe and the U.S. for selling McDowell products in these markets, the statement said.

Bouvet Ladubay set up its winery in 1851 in the Loire Valley of France. The winery produces premium sparkling wine that is sold in France, Germany, the U.K. and the U.S.

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