Acquisition
05 September 2002 - 6:13PM
UK Regulatory
5th September 2002
FOR IMMEDIATE RELEASE
GRANGE TO BE CONTINENTAL PLATFORM FOR
AGA FOODSERVICE GROUP
Aga Foodservice Group plc (AFG) has conditionally acquired a 27.4 per cent
shareholding in Grange as part of the expansion of its consumer brand led
operations. Grange, founded in 1905, is a leading retail furniture brand and
manufacturer based in France. It has a strong distribution structure through 8
owned retail outlets in France and 16 outlets in the USA selling to architects
and interior design consultants. It also has a network of independent retailers
across Europe.
Under Dominique Mercier, the majority shareholder and chief executive, Grange
has a strong product base and is seeking to strengthen its retail offering.
Grange will initially distribute Aga, Fired Earth and Domain products in France
using its own retail space. Together a combined retail formula is to be
developed for Grange's own stores and a number of the independent distributor
stores.
AFG is paying Euros 5.5 million for 27.4 per cent of Grange, of which Euros 3
million is being invested by way of a cash subscription for new shares. Grange,
which produces classic French furniture, had turnover of Euros 72 million and
made EBITA of Euros 0.6 million in the year to December 2001. After exceptional
costs of Euros 2.8 million and interest in 2001, Grange made a pre tax loss of
Euros 3.4 million. Grange's net assets at 31st December 2001 were Euros 3.6
million and net debt was Euros 8.9 million. Grange expects to be profitable in
2002.
The investment provides, in particular, a continental platform through which to
increase sales of AFG products. It also increases the Group's interest in high
end furniture following the acquisition of the US retailer, Domain, in March
and the expansion of Fired Earth's home collection.
William McGrath, Chief Executive of Aga Foodservice Group plc said "Grange's
reputation and connections with the more affluent consumer internationally can
provide the platform for us to expand our existing brand led operations headed
by Aga. It is a modest investment but a big opportunity. Itis a first step in
our plans to create a wider Europeanbasefor our products."
Dominique Mercier, Chief Executive of Grange said "A strong partner will enable
us to realise the retail potential Grange has as a classic, brand led furniture
and home fashions operator. We look forward to working closely with Aga
companies."
Further information on Grange can be found on their website at www.grange.fr
[-ENDS-]
Enquiries:
William McGrath, Chief Executive, Aga Foodservice Group 0121 742 2366
plc
Jonathan Glass Brunswick Group 0207 404 5959
END
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