Irish International, one of the State's leading advertising agencies, has been bought for more than £16 million by a British and a US company. Abbot Mead Vickers (AMV) and BBDO Worldwide each took a 50 per cent stake in the Dublin-based firm, but AMV will have operational responsibility.

Among its clients, Irish International can list Aer Lingus, Renault, Barry's Tea, Hibernian, Independent Newspapers and some Guinness products such as Budweiser and Harp. The agency already shares the Aer Lingus account with AMV, which deals with the airline's advertising outside Ireland.

Last night, the managing director of Irish International, Mr Ian Young, said he was delighted with the deal. He said he approached AMV with the idea, whose chairman, Mr Peter Mead, he had known for 15 years.

"We recognised the need for us to establish truly international credentials," he said. "There are now quite a number of companies in Ireland that expect international expertise, because even if they operate mainly in Ireland they have that global outlook."

The deal would bring few changes to the way the company was managed, he added: "They tend to run their companies as federal states we will keep the same name, the same management, the same staff."

New York-based BBDO holds a 27.7 per cent stake in AMV; yesterday's deal means that Irish International will become the Irish agency of its network.

Irish International has billings the standard industry measurement of a company size of around £32 million, he said, while annual turnover was at £24 million. In the 12 months to the end of March, the company had adjusted pre-tax profits of £1.03 million.

Mr Young said there were 11 separate shareholders in Irish International. Those holding more than a 10 per cent stake included himself, Mr Mal Stevenson, Mr Johnny Donohoe, Mr Trevor O'Rourke and Mr Willy Nolan.

In a statement, the three companies said AMV and BBDO had made an initial cash payment of £4.25 million, and would make a series of five additional payments of up to £12 million in total, depending on the profitability of the company over the five years to the end of 2002.

AMV is to have operational responsibility for the joint venture and receive a preferential dividend of 10 per cent of profits as a management fee. AMV would also be able to acquire BBDO's interest in the company in three years, at a price reflecting BBDO's investment.