Shares in Aga Rangemaster have rocketed up 30% after the company said it was in talks about a potential takeover.
The reports say that Rangemaster has been targeted by the Middleby Corporation of Illinois. The US firm is considering a cash offer for Aga.
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).
AGA Rangemaster 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 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.
in a statement Rangemaster said: “The company notes the recent movement in the company’s share price and confirms that it is in discussions with The Middleby Corporation regarding a possible cash offer for the company.
“There can be no certainty that any formal offer will be made, or as to the terms of any offer.
Under Stock Exchange rules Middleby has until 5pm on July 15 to announce whether or not it intends to make an offer for the company. However, the deadline may be extended with the consent of the Takeover Panel.
