Irish drinks company C&C will sell the Tayto Crisp Company in a deal that is expected to be complete by the end of the year. The Tayto firm showed operating profits of €5.8m, on a turnover of €47.3m for the year ending February 2006.
C&C said they will use the proceeds of the sale to offset debts.
Chief executive Maurice Pratt said: "The price achieved for Tayto recognises the value of its iconic brand position in the Irish market."
In an outsourcing agreement, Largo had already won the right to produce Tayto crisps in their plants at Meath and Donegal in Ireland.
As well as plants in Ireland, Largo have operating facilities in the Czech Republic and own brands already popular in the crisp market such as Hunky Dorys and Perri.
The Tayto Crisp Company was established in 1954 and sells two of the top five Irish crisp products - King and Tayto.
The company has 400 employees and, according to the firm, was the first to produce cheese and onion flavoured crisps.