In its first major deal since last year's takeover, Ireland's BWG Foods has signed a renewed five-year deal with Maxol to supply its forecourts across the Republic.

The parties aim to achieve combined sales of €400m over the period of the contract, which extends a 10-year partnership between BWG and Maxol.

The deal covers more than 50 forecourt shops, but Maxol plans to add another 25 stores to its network over the next five years.

The forecourt stores will operate under both the Mace and Spar symbols, the franchises for which are owned by BWG in Ireland,

"We see huge potential in our retail operation, especially as a number of petrol stations are being bought by developers," said Maxol chief executive Tom Noonan. "We're also planning retail innovations we believe will prove popular.

"Investment of more than €35m has already been made in our 50 stores in the past six years and a further €3m is planned this year."

BWG was acquired for €390m in October by three of its directors - chief executive Leo Crawford, finance officer John O'Donnell and businessman John Clohisey. Each now owns a third of the business.

Crawford said forecourt retailing had become an increasingly significant part of the Irish retail sector.

"It's a very good start for us," he said. "We're very happy to have tied down this deal for another five years."