Iceland Foods’ international business director Paul Foley will join the board of Ísland-Verslun

Iceland Foods’ international business director Paul Foley will join the board of Ísland-Verslun

UK frozen food retailer Iceland Foods has outlined plans to grow in Iceland following the acquisition of a stake in its operating company in the country Ísland-Verslun.

Iceland Foods bought the 37% stake through its wholly-owned subsidiary Iceland Limited. Ísland-Verslun, which opened the first franchised Iceland store in the country in July, will own the remaining 68%.

The UK retailer plans to open four more outlets in the country, chairman and chief executive Malcolm Walker said.

"We have been delighted by the huge success of the first Iceland store in Reykjavik with the Icelandic public, and are pleased to make this investment to support a further roll-out of the franchise to at least four stores," Walker said.

"There could be no more natural fit than that between Iceland the company and Iceland the country, and my own long-standing friendship with [owner] Jóhannes Jónsson underpins our confidence in the future prospects for Ísland-Verslun."

The deal will also see Iceland Foods' international business director Paul Foley join the board of Ísland-Verslun.