Greencore has sold a further 26 per cent of its shareholding in the Odlums Group flour business to IAWS. This means that both companies now have 50 per cent of Odlums.

Plans for Greencore and IAWs to combine their flour businesses were flagged some time ago. In a statement Greencore said the valu of Odlums net asets at the date of its last audited acocunts (Sepember 28th, 2001) were approximately €15.5 million.

Greencore will use the proceeds to reduce debts it incurred when it bought Hazlewoods Foods last year. It has embarked on a series of steps including restructuring and disposals to pay down debt associated with Hazlewood.

Greencore chief executive Mr David Dilger said he was confident that Odlums would secure "the economic production of flour in Ireland on a scale which can deliver vlaue to our customers and which will benefit both Greencore and IAWS going forward."