The Irish Agricultural Wholesale Society (IAWS) Co-op, run by Philip Lynch, has proposed buying out the financial and energy division of the SWS Group for €64 million.

The co-op said the most it would pay was €64 million, of which €42.5 million would fall due on completion of the deal.

The balance of up to €21.5 million would depend on the achievement of agreed profit targets over a three-year period.

The SWS Group, based in Bandon, west Cork, operates across a range of sectors.

It is owned by five leading co-ops: Bandon Co-op, Barryroe Co-op, Dairygold Co-op, Drinagh Co-op Ltd and Lisavaird Co-op.

It is run by a board of management drawn from the five co-ops.

The SWS Group has interests in natural resources, wind energy, forestry, biomass, waste and outsourcing services. The company came to public attention last year when Independent News and Media outsourced several of its back office functions to the company as part of a restructuring drive to cut costs.

IAWS Co-op was also in the news this week. It withdrew from the Setanta Sports consortium bidding for cable group NTL Ireland on the eve of the deadline for the submission of final bids.

The society, which owns 17 per cent of food group IAWS plc, would not comment on the reason for its late withdrawal from the consortium.

The IAWS Co-op has also increased its stake in toll roads and waste management group NTR to 26 per cent in recent weeks. It has been building a stake in NTR for the past few months, but it is unlikely to increase its stake beyond 26 per cent for the moment.

The IAWS Co-op is controlled by more than 40 small co-ops in Ireland. It has annual turnover of more than €70 million and employs 500 staff.

Its offer for SWS Group is subject to the finalisation of due diligence and the completion of legal documentation.