6th Jul 2005 10:35
AGA Foodservice Group PLC06 July 2005 6th July 2005 FOR IMMEDIATE RELEASE AGA ACQUIRES MAJORITY SHAREHOLDING IN GRANGE Aga Foodservice Group plc (Aga) has increased its shareholding in Grange, thefurniture manufacturer from 40.7% to 75.0%. The consideration is Euros 7.5million (£5.1 million). The remaining shares are all held by Dominique Mercier,the Managing Director of Grange. Grange has successfully reorganised its French based production in recent yearsand has added a production facility in Romania. It made a profit before tax ofEuros 2 million in the year to 31st December 2004 on turnover of Euros 45.6million. Net assets at that time were Euros 4.6 million and net debt was Euros2.2 million. Grange has worked well with Aga companies since the initial investment inSeptember 2002 committing space to Aga Group products in London, Paris, Lyon,New York and Montreal. Some major Grange dealers now also sell Aga products,notably in St Petersburg and Istanbul. In addition, the Grange furniture rangeis now available through Fired Earth. As Grange and Aga companies have customer bases in common, the strategy is forthe enlarged grouping to accelerate its international expansion, particularlythrough owned retail outlets and in conjunction with established Grange dealers. Commenting on the transaction, Chief Executive, William McGrath said:"Internationalising our consumer operations is central to our strategy andGrange is playing an important role. As we accelerate the process, the time isright to take a majority interest in Grange." Dominique Mercier, Managing Director of Grange said: "Grange is a stronginternational brand. As an Aga-owned company we will have greater reach andresources to market the classic and modern product ranges we have on offer. Myteam has the passion for both Grange and Aga products which will enable ourbusinesses to grow together." (-ENDS-) Enquiries: William McGrath, Chief Executive, Aga Foodservice Group plc 0121 711 6015 Jonathan Glass/Simon Sporborg, Brunswick 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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