Foods group IAWS has expanded its consumer foods operations with the acquisition of the Pierre's hot snacks and takeaway foods business for €26 million (£20.6 million).

The acquisition complements IAWS's existing Cuisine de France and Delice de France operations and gives the group access to takeaway and fast-food outlets for the first time.

The deal is comparatively small by IAWS's recent standards and had little impact on the share price. But analysts welcomed it as a further indication of IAWS's increasing focus on consumer foods. Goodbody analyst Mr Liam Igoe said that the Pierre's acquisition could add £1 million to IAWS profits in year one.

Pierre's has been sold by Green Isle Foods, the Irish subsidiary of Northern Foods. As well as taking over Pierre's, IAWS's Shamrock Foods subsidiary is also taking over the distribution of Green Isle's branded frozen food products in the Republic and Northern Ireland. These brands include Goodfella's pizzas, Donegal Catch frozen fish products and Green Isle branded products.

Shamrock Foods already distributes its own branded baking products as well as confectionery such as Mars and Twix. Taking on the Green Isle distribution means that Shamrock is adding chilled distribution to its existing ambient distribution business.

IAWS finance director Mr David Martin said that Pierre's has sales of around £26 million and in the year to March 2000 had operating profits of €3 million (£2.4 million) with net assets of €2.46 million (£2 million).

This acquisition is the latest move in IAWS's strategy of shifting emphasis from its agribusiness operations to higher-margin consumer foods. Foods now account for 40 per cent of turnover compared to 15 per cent four years ago and the Pierre's acquisition will further increase the proportion of sales coming from consumer foods.

The first big move into consumer foods came in 1997 with the acquisition of Cuisine de France for £52 million. This was followed in July last year with the acquisition for £41 million of Delice de France, a British manufacturer of breads, confectionery and savouries for the catering and food-service industry.

Green Isle managing director Mr Tony Hynes said: "While the food-service and distribution sides of our business have been very successful, our focus is on consolidating and growing our position as a key player in the Irish and UK value-added retail frozen food sector. This move enables us to further invest in our state-of-the-art manufacturing facilities throughout Ireland."