17th Jun 2015 14:33
LONDON (Alliance News) - AGA Rangemaster Group PLC Wednesday said it is in discussions with US food service equipment firm The Middleby Corp regarding a possible cash offer for the British maker of iconic range cookers.
AGA Rangemaster, which makes brands including AGA and Rayburn range cookers and Fired Earth kitchen and bathroom products, said that there is no certainty that any formal offer will be made, or as to the terms of the offer.
The Middleby Corp 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. It has until 1700 BST on July 15 to announce a firm intention to make an offer for AGA Rangemaster or walk away.
In a separate statement, The Middleby Corp said "its board of directors is in preliminary discussions regarding a possible cash offer for AGA Rangemaster Group PLC. These discussions are at a very early stage and there can be no certainty that any formal offer will be made, or as to the terms of any offer. A further announcement will be made when appropriate".
Shares in AGA Rangemaster were trading up 31.4% at 136.93 pence in London Wednesday afternoon, which the company said it had noted. Middleby Corp shares were up 4.2% at USD112.25 a share on the Nasdaq.
AGA Rangemaster has a current market capitalisation of GBP94.2 million.
In March, the company reported an operating profit of GBP9.6 million, up from GBP8.2 million in 2013, as revenue grew to GBP261.1 million, from GBP250.4 million.
It said AGA heat storage cooker volumes grew 9%, Rangemaster sales grew 9% in the UK and 6% overall, while Fired Earth and AGA Marvel saw revenues grow by over 10% in North America. That more than offset declines for its Waterford Stanley cookers and stoves business in Ireland and its France-based Grange furniture lines.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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