IDB's finance director Cathal Fitzgerald told the Sunday Tribune that the group had offloaded its food services arm in New Mexico to local operator Shamrock Foods. IDB owns Distribution Plus in the US, which it acquired in 1990. It has operations throughout the country, but had been looking for a buyer for the New Mexico arm for some time.

Fitzgerald, who said the assets disposed of were "noncore" and added that the company wants to focus its business on retail distribution. It has contracts with companies such as Starbucks and is in negotiations to extend its partnership with the coffee chain.

Fitzgerald said IDB also sold its food services distribution arm in Arizona in April to a private operator for $5.5m.

The New Mexico business had a number of supply contracts with institutions such as prisons and hospitals. The sale included assets such as transportation and stock as well as six cash-and-carries.

Fitzgerald said that in the first five months of the year, IDB's US business had performed well. Last year Distribution Plus posted a 14% increase in turnover to $873m.

The Irish Dairy Board, which is owned by shareholders including Glanbia, Connaught Gold and Dairygold, saw turnover rise 4.5% to 1.97bn last year, with an operating surplus of 41m.