Leamington Spa company Aga Rangemaster has been bought by an American company in a £129 million deal.
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The group, which is based in Leamington Spa, and has been manufacturing its stoves in Coalbrookdale, Shropshire, since 1930, said it had agreed a sale with the Middleby Corporation.
The deal represents a premium of approximately 77 percent over the closing price on June 16, being the last business day prior to commencement of the offer period.
Middleby Corp CEO Selim Bassoul said “The addition of AGA’s world class brands, product range and manufacturing capability to our existing portfolio will further strengthen Middleby’s global reach and enhance our position as a leader in the premium segment for residential kitchen equipment”.
The Aga cooker was invented by the Swedish physicist Gustaf Dalen in 1922.
“Until such review is completed, Middleby has not made any firm decisions with regard to Aga’s business”, it said.
Mr Coleman said that Aga’s board had hired advisers at Rothschild in January to explore options to bring more growth into the business.
Aga chief executive William McGrath said: “Aga will be the European platform for Middleby and our cookers will be sold through Middleby distribution channels, which will increase our growth rates in North America and in other worldwide markets”.
“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.
Aga posted pre-tax profits of £700,000 for 2014, down from £1.1m in 2013, as revenues rose to £261.5m from £250.4m.
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It launched formally in Beijing in March.
