Aga selling off business arm
Kitchens specialist Aga Foodservice cut the size of its business today after agreeing the £260 million sale of its commercial equipment arm. Kitchens specialist Aga Foodservice cut the size of its business today after agreeing the £260 million sale of its commercial equipment arm. The proposed deal with Italian firm Ali will enable Solihull-based Aga to concentrate on consumer brands such as Aga, Rangemaster and Marvel. The move will not affect the group's operations in Shropshire, where Aga's iconic ovens are cast and decorated at sites in Coalbrookdale and Ketley. Read the full story in today's Shropshire Star
Kitchens specialist Aga Foodservice cut the size of its business today after agreeing the £260 million sale of its commercial equipment arm.
The proposed deal with Italian firm Ali will enable Solihull-based Aga to concentrate on consumer brands such as Aga, Rangemaster and Marvel.
The move will not affect the group's operations in Shropshire, where Aga's iconic ovens are cast and decorated at sites in Coalbrookdale and Ketley.
A spokeswoman said: "It will be business as usual. No jobs will be affected."
Aga sought offers for the commercial operation after it failed last year to strike a merger deal with UK-listed foodservice company Enodis.
The Aga commercial business includes Bongard and Pavailler, the France-based suppliers of bakery equipment, and Falcon and Williams, two providers of hot and cold foodservice equipment across Europe.
Milan-based Ali generates annual revenues of about £592.9m and has 32 manufacturing sites in 12 countries.
Operations in the UK include Barnsley-based Dawson Foodservice Equipment, which supplies dishwashers, cooking equipment, steamers and refrigeration equipment to the UK commercial catering market. Last year, the Aga foodservice business achieved revenues of £250.3 million and operating profits of £21.2 million.
A significant proportion of the sale proceeds will be passed to shareholders.
William McGrath, Aga chief executive, said: "It is pleasing to agree this sale at a good price to a group which is already driving change in the foodservice equipment sector. We will now focus on developing our consumer operations and on the best way of delivering value to shareholders."
He said growth at the remaining consumer brands operation was likely to be achieved organically, rather than through acquisitions.
One area of focus will be to increase revenues from existing customers, in particular through the use of the company's 700,000 strong database in order to to boost spend on Agas and Rangemasters and other products.
By Business Correspondent Neil Thomas