Food company IAWS Group has boosted its presence in the global speciality bread market by paying $55m for an 80% stake in the La Brea Bakery group of companies in the US.
'This acquisition will establish IAWS as the market leader in the premium artisan bread market in the US,' chief executive Philip Lynch said in a statement.
IAWS said it would assume $13.5m in debt. LA-based La Brea had adjusted operating profits of $4.5m in the year to December 31, 2000, at which date net assets stood at $3.2m.
IAWS has operations in Ireland, the UK, Europe and the US, and last month announced a 50-50 joint venture between its subsidiary Cuisine de France and Canadian restaurant chain, Tim Hortons, in an investment worth 225m euro.
IAWS's headquarters is located in Dublin and it produces Cuisine de France, Pierre's and Delice de France breads and confectionery. The group reported pre-tax profits excluding exceptionals of 18.2m euro for its first half to the end of January, an increase of 20% on the same period last year, on turnover of 496m euro.
Since its flotation on the London and Irish Stock Exchanges in 1988, the group's sales have increased from 174m euro to 982m euros in 2000. The group's share price was up ten cents at 7.65 euro by the close of business.
