15th Jul 2015 07:01
LONDON (Alliance News) - AGA Rangemaster Group PLC on Wednesday said it has agreed to be taken over by US kitchen products company Middleby Corp in a GBP129 million deal.
Middleby will pay 185 pence per share for AGA, a 77% premium to its closing price on June 16, when the offer was first made, and a 22% premium to AGA's closing share price of 152 pence on Tuesday.
Middleby said the deal will expand its range of premium kitchen appliances by adding the AGA, Rangemaster, La Cornue and Marvel lines to its portfolio. Middleby is based in Elgin, Illinois and makes bakery and other commercial use ovens as well as U-Line wine cellars and drinks cabinets and Viking range cookers for the home.
"With the major product development programmes of recent years now largely completed, the board has sought to identify the commercial triggers that have the potential to bring more rapid growth. Middleby provides a larger scale framework including an established international structure to deliver fully on the potential of the business," said AGA Chairman John Coleman.
"The financial strength of Middleby also achieves a better balance with AGA's pension obligations - which are large in relation to the existing business and which have become a significant constraint on the progress of the group," Coleman added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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