Leamington cooker maker Aga sold to US firm

[dutchman]

The cast-iron cooker maker Aga Rangemaster is to be sold to a US firm in a deal valued at £129m.

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 US firm said it would carry out a strategic review of operations later in the year, once the deal is completed.

It said it planned to keep Aga's manufacturing in the UK.

Last year, Aga announced a fall in profits, mainly because of pension costs, shop closures and site rationalisation, although revenues rose.

However, it said markets for its appliances had strengthened at the start of the year.

The group, which also owns the Fired Earth tiles brand, recently began sales in China after spending more than two years gaining the right accreditations.

Selim Bassoul, chairman and chief executive of Illinois-based Middleby, said the takeover would strengthen the company's global reach.

Aga said the deal would help increase sales of its brands in North America, while the British firm would offer Middleby a "European platform".

The first Aga oven was designed by Swedish Nobel Prize-winning physicist Gustaf Dalen in 1922 and production started in the West Midlands seven years later.

[rebbonk]

The US firm said it would carry out a strategic review of operations later in the year,

Sounds ominous.

Very few of these company mergers actually work in practice. What looks good on paper often turns to in real life. The people and culture factors are usually overlooked.

[dutchman]

It said it planned to keep Aga's manufacturing in the UK.

I've heard that one before!

[dutchman]

AGA Rangemaster to cut 60 jobs at its Leamington HQ



Staff at Leamington-based AGA Rangemaster face an uncertain Christmas after the company announced proposals to shed 60 jobs at its Warwickshire HQ.

Redundancy consultations have now begun at the Juno Drive firm over plans for cuts to both manufacturing and office-based roles.

A spokeswoman for AGA Rangemaster said the proposals involved shedding 33 out of 394 shop floor jobs and 27 out of 174 staff roles in Leamington.

The move comes just five months after AGA Rangemaster was acquired by US-based firm the Middleby Corporation in a £129million deal.

AGA Rangemaster’s spokeswoman added that the latest move came as a result of “a strategic review” conducted by the Middleby Corporation.

As well as the 60 jobs in Leamington, the manufacturer famed for its AGA range ovens beloved by the country set and celebrity chefs, plans to cut 68 jobs at its manufacturing sites in Telford and Coalbrookdale in Shropshire.

The spokeswoman said the company was “fully confident the majority of the roles will be through voluntary redundancy”.

The GMB union is currently in talks with the company over the proposals affecting hourly paid staff which it represents.

The GMB said it had met with the company to discuss the reasons for cuts and that it would be working to limit the number of job losses and avoid compulsory redundancies.

AGA Rangemaster has told the union it intends to make the first redundancies by February 5 next year.

Mohammed Khalik, GMB regional officer, said “This is very disappointing news especially at this time of year when people should be looking forward to a break with their families.

“The priority will be to limit the number of job losses and to avoid compulsory redundancies.”

In a statement AGA Rangemaster said the strategic review had “identified the potential structural and commercial changes necessary to build on the company’s present strength and create a firm foundation for growth in the future”.

It said it had no plans to cut its four manufacturing sites.

Tim Fitzgerald, CEO of the Middleby Corporation, said: “These structural and commercial changes will allow AGA Rangemaster to build on its existing strength and create the conditions that will enable it to flourish in the long-term.

“We regret that there must be changes to the workforce, but we are consulting with employees, trade unions and other stakeholders to minimise the impact and ensure that this difficult process is managed with sympathy.

“There are no plans to close the four manufacturing sites as part of these changes. The Middleby Corporation is committed to manufacturing the world class AGA Rangemaster brands and products in the United Kingdom as we build scale and growth in the business.”