Food group IAWS has announced a 50-50 joint venture between its subsidiary Cuisine de France and Canadian restaurant chain Tim Hortons.
The agreement, which could involve a total of 225 million euro investment, will see the development of a speciality bakery in Ontario in Canada.
This will supply baked goods to the Tim Hortons chain in North America and Cuisine de France outlets in the US.
The news came as IAWS reported pre-tax profits excluding exceptionals of 18.2 million euros for its first half to the end of January, an increase of 20% on the same period last year.
Turnover was 12% higher at 496 million euros and adjusted earnings per share rose 17% to 11.53 cents.
IAWS said its food operations, including Cuisine de France, Delice de France and Pierre's, all experienced strong growth.
In the nutrition/agri division, feed volumes fell as a result of the BSE crisis, but IAWS said its fertiliser businesses were performing satisfactorily.
IAWS shares surged over 12% after today's news. By 3.30pm this afternoon, they had gained 85 cents to trade at 7.80 euros.
