IAWS has acquired a 22 per cent stake in the Switzerland-based Hiestand group, a gourmet bakery that manufactures and distributes frozen bakery goods to the retail and foodservice markets.

The consideration is €26 million. Hiestand is a Swiss public limited company with an annual turnover of approximately €200 million.

The acquisition is a strategic one and gives IAWS a significant presence in markets where it currently has no position.

The Swiss company has manufacturing and/or distribution operations in Switzerland, Germany, Poland, Austria, Britain, Asia Pacific and Japan.

It is a well-known company in the area of research and new product development - another reason the company was attractive to the Irish plc and owner of the Cuisine de France brand.

Management in the two companies believe the IAWS acquisition will bring synergies and benefits to both parties as there are opportunities in each others markets.

Potential synergies include complementary geographical coverage as well as "know-how transfer".

In a press release, IAWS said the Swiss company had unique production know-how in gourmet confectionery and breads, while IAWS specialised in high-quality French breads and savoury products.

"Both companies continue to expand their product range with the introduction of innovative new products."

Both companies manufacture and distribute frozen bakery goods to the retail and foodservice markets.