Cuisine de France's new owners will invest up to £15 million to further develop the brand, agribusiness group, IAWS's chief executive, Mr Philip Lynch, said last night. The acquisition is the biggest in the group's history.

The company will build a plant in Britain and expects to employ a further 100 people, in addition to the current 150-strong workforce, by the end of next year.

The current management structure at Cuisine de France will also remain in place. "Cuisine de France has an excellent management team, we would be mad to try to change it," Mr Lynch said.

He believes that the company, which currently exports to 600 stores in Britain, can greatly increase its presence there. In line with IAWS strategy, it will now take steps to install a manufacturing presence in Britain.

Mr Lynch said that Cuisine is the most interesting company he has ever come across and is one of Ireland's "greatest corporate successes". He pointed out that in just eight years the company had developed into a group worth £50 million.

It is understood that Cuisine de France made pre-tax profits of around £3.7 million last year. IAWS will not have to embark on a share placing to fund the acquisition. It will be funded through internal resources and borrowings. It is expected to increase the group's gearing ratio to 6570 per cent.

IAWS first expressed an interest in Cuisine two years ago, an interest which was not reciprocated at the time. When IAWS heard the owners were interested in selling about two months ago, they began negotiations.

The company was there at the finish, on a short-list of about five. There was strong overseas interest from, Holland and Britain. Among those reportedly interested were Van der Bergh Foods and Green Isle.

IAWS's last major acquisition was in 1990 when it bought the animal feeds group R. & H. Hall for £44 million. This acquisition was a combination of cash and shares.

The group's most recent acquisition was the British specialist horticultural fertiliser manufacturer P.B. Kent for £9 million sterling. It is the second largest manufacturer of horticultural fertilisers in Britain.

IAWS is due to report annual results within the next few weeks. The group's last results, for the six months to January 31st this year, showed a 27 per cent rise in pre-tax profit from £4.8 million to £6.1 million. Sales grew by 10 per cent from £246 million to £270.4 million.