South Australia's iconic Peter Lehmann Wines is set to be sold to New South Wales based Casella Family Brands.

Casella Family Brand is known internationally for its Yellow Tail wine range.

The board at Peter Lehmann Wines has told shareholders it received a proposal from Casella Family Brands to acquire 100 per cent of the company's outstanding shares for $1.50 a share.

Peter Lehmann Wines' major shareholders The Hess Group Australia and Margaret Lehmann, intend to accept the offer.

Mrs Lehmann said she believed Casella Family Brand shared the same values that led to the creation of her late husband's company, and that Peter Lehmann Wines would continue to "flourish" under its ownership.

"John Casella is himself a winemaker and shares the values that led to the creation of the company," Mrs Lehmann said.

"I believe Peter Lehmann Wines will continue to flourish, because the patient capital of private ownership is better suited to the cyclical nature of the wine industry."

The board's chairman, Christoph Ehrbar, said he was confident Casella Family Wine Brands would continue Peter Lehmann's legacy.

"The board has evaluated the proposal by Casella Family Brands to acquire Peter Lehmann Wines and is confident that John Casella and his team will be fine custodians of Peter Lehmann's legacy," Mr Ehrbar said.

"Casella Family Brands is an Australian family owned wine success story with the vision and expertise to continue the development of this important South Australian wine business."

Known as the Baron of the Barossa, winemaker Peter Lehmann died in June last year at age 82.

He had retired in 2002, but he and his wife remained part-owners of the business and lived next to the Barossa winery.