Shares in Aga Rangemaster, known for its cast-iron stoves, shot up 30% after the company said it was in talks about a potential takeover.
The Leamington Spa-based company – which also owns the Fired Earth luxury tiles business – has been targeted by the Middleby Corporation of Illinois. The US firm is considering a cash offer for Aga.
Listed on the Nasdaq, Middleby makes kitchen equipment for restaurants and households. It posted net earnings of nearly $52m for the fourth quarter and sales of $435m (£276.7m).
Shares in Aga jumped to 133.5p. The company traces its history back to the early 18th century in Coalbrookdale, Shropshire, where Aga and Rangemaster cookers are still made at its UK foundry today. The firm claims the oldest Aga cooker still in operation was first installed in 1932.
Aga’s operating profits climbed 17% to £9.6m last year, with UK revenues up 8.5% to £171.5m. The company, which has collaborated with Cath Kidston, benefited from an upturn in the UK housing market, which led to people spending more on household appliances “after a long period in the doldrums”. Europe remained difficult, however.
The Aga and Rangemaster cookers remain its most important brands, but its Marvel Refrigeration business in the US has increased market share, and the Fired Earth tile range performed strongly with revenue growth of more than 15%.
Middleby has been snapping up other firms in recent years, such as India’s Celfrost, Californian food-dispenser manufacturer Wunder-Bar and US espresso-machine maker Concordia.
