The food and beverage division of Irish sales, marketing and support services group DCC has said it has reached agreement to acquire 100% of its associate company Allied Foods.

DCC first invested in Allied Foods in 1989 and has owned 50% of the voting share capital and 51.5% of the total share capital of Allied Foods' holding company, Millais Investments Limited, since 1998. DCC is now acquiring the other 50% of the voting share capital and the other 48.5% of the total share capital for €14.5m (US$17.4m).

Allied Foods operates in the Irish chilled and frozen food distribution market with substantial operations based in Dublin and Cork. Its subsidiary, Allied Logistics, provides temperature-controlled logistics to some of the largest food retailers and suppliers in Ireland.

"The acquisition of 100% of the Allied Foods group strengthens the position of DCC Food & Beverage in the growing food service and chilled and frozen food sectors in Ireland. Allied has a strong management team and excellent facilities that will drive the company's continued growth in the years ahead," said DCC's chief executive, Jim Flavin.