Aga to sell catering equipment unit
Friday, 19 Oct 2007 10:03
Aga says it plans to focus on organic growth
The Aga Foodservice Group has confirmed that it has agreed to sell its catering equipment business to an Italian manufacturer.
In a statement today the upmarket oven maker said that it was selling its commercial foodservice and bakery equipment business to Ali Spa for £260 million in cash.
Aga Foodservice Equipment, the unit being sold, made an operating profit of £21.2 million on revenues of £250.3 million in the year ending December 31st 2006.
However Aga says that the sale of the unit will enable it to focus on boosting the profitability of its consumer business, with its range of kitchen appliances including the Aga, Rangemaster and Marvel brands.
Aga added that it intends to turn its attention to achieving organic growth, rather than making acquisitions.
The company says that it intends to return a "significant proportion" of the available net proceeds from the proposed sale to shareholders. It is expected that investors will receive the benefits during the first quarter of 2008.
Commenting on the planned sell-off, Aga chief executive William McGrath 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."
Meanwhile Aga announced today that its chairman, Victor Cocker, had decided to stand down from the post after almost four years in the role.
Mr Cocker, who has spent a total of seven years with Aga, will step down at the company's next annual general meeting.