AGA.L Regulatory News (AGA)

21 Jun 2007 07:54

21st June 2007FOR IMMEDIATE RELEASE Aga Foodservice Group plc Aga completes divestment of Domain

Aga Foodservice Group ("Aga") announces today the sale of its US home fashions business, Domain, to a group of investors headed by the US retail and consumer products entrepreneur Gary Nacht, Chairman and Chief Executive of Synergy Enterprises ("Synergy").

The consideration is ‚£3.5 million of which ‚£2.0 million is in cash and ‚£1.5 million is in loan notes repayable over four years. An additional closing adjustment receipt of approximately ‚£0.6 million is due six months after completion. Aga is receiving a 15% shareholding in the new entity. Post the transaction Domain will remain a retailer of Aga cookers in the USA with live displays in 12 stores, including two newly refurbished stores.

Domain specialises in mid to upscale furniture and has 27 stores on the US east coast. In 2006 Domain was treated as a discontinued activity reporting a loss of ‚£2.7 million on turnover of ‚£38.8 million and at 31st December had gross assets of ‚£8.1 million. There will be a small loss in the current year from discontinued operations taking account of trading and realisation costs.

William McGrath, Chief Executive, Aga Foodservice Group plc : ¢â‚¬"We are pleased that we have found a new owner whilst at the same time maintaining Domain as an important route to market for Aga Ranges in the US. All our appliance brands in North America ¢â‚¬â€œ Marvel, Heartland and Aga Ranges - now have good national distribution and are well set. Domain will continue to be an important component for Aga Ranges¢â‚¬â„¢ sales structure. We look forward to working with Gary Nacht, Judy George and their team.¢â‚¬

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Enquiries:

William McGrath, Chief Executive, Aga Foodservice Group plc - 0121 711 6015 Simon Sporborg/Nina Coad, Brunswick - 020 7404 5959