RNS Number:5614G
AGA Foodservice Group PLC
9 July 2001


AGA FOODSERVICE GROUP plc EXPANDS RETAIL OPERATIONS WITH
ACQUISITION OF FIRED EARTH LTD

Aga Foodservice Group plc today announces that it has acquired Fired Earth
Ltd, the UK's leading interior finishes company for #29.5 million.  The
consideration comprises #23.4 million in cash and #6.1 million in redeemable
loan notes of which #3.3 million are convertible into Aga Foodservice shares
at 250 pence per share.

Fired Earth, founded in 1983, operates through 55 retail outlets, 18 of
which are new store openings in the last three years. Three of the sites are
in its larger and innovative out-of-town "Inspiration" format.

In 1998 Fired Earth was acquired for #20.6 million in a public to private
transaction led by PPM Ventures Limited, the private equity arm of the
Prudential.  Since then, the company has taken its product range beyond
ceramic tiles notably into paint and is now rapidly expanding into
bathrooms.  In the year ended 31st December 2000 it made operating profits
of #2.1 million on turnover of #18 million.  The business is performing
well, with the benefits of the new store openings beginning to accrue. Net
operating assets on completion are estimated at #2.5 million.

Fired Earth's management led by Managing Director, Fraser Allan and Founder
and Creative Director, Nicholas Kneale, will remain with the Group and work
closely with Aga Foodservice Group management to expand the business further
alongside Aga Foodservice Group's existing consumer business.

The acquisition of Fired Earth is Aga Foodservice Group's first major
strategic move, following the sale of the pipes business earlier this year
and the renaming of the group as the Aga Foodservice Group.  Aga and Fired
Earth are both well-established high profile brands, with comparable
customer bases and complementary distribution channels. Fired Earth brings
top class retailing skills and an expanding retail portfolio with a
particular strength in the South East of England. The intention is to
accelerate both companies' development plans and seek opportunities to
invest in the enlarged business both in the UK and overseas.

William McGrath, Chief Executive said, "Fired Earth is a growing business
with a strong empathetic brand.  Its acquisition is an important step
forward in the creation of a major brand-led retail operation. Both
management teams immediately recognized that the combination of Aga
Foodservice Group and Fired Earth is an exciting opportunity and there are
real revenue synergies.  The operations will work closely together to
realise the full potential of both businesses."



For further information:

William McGrath
Chief Executive
Aga Foodservice Group plc       -   0121 742 2366

Fraser Allan
Managing Director
Fired Earth Ltd                 -   01295 812088

Jonathan Glass
Nina Richmond
Brunswick Group                 -   020 7404 5959

Notes to Editors:

Fired Earth Ltd
Fired Earth is Britain's leading interior finishes company. It was founded
by Nicholas Kneale in 1983. In the following few years the company became
renowned worldwide for its tile collection, with a reputation for quality,
exclusivity and timeless design. The first store was opened in Holland Park,
London and today there are 46 showrooms in the UK and 9 in Europe.  Its
flagship store locations include Lidlington near Bedford, Orpington and
Banbury, with new stores opened this year in Tunbridge Wells, Dublin and
Edinburgh. From 1993, the new product categories of natural and wood
flooring, paint, fabrics and bathroom fittings were introduced. Fired Earth
currently offers a range of 2,500 products.

Aga Foodservice Group plc
Aga Foodservice is the UK's leading cooking equipment supplier for the
commercial and domestic markets. The company has 87 Aga shops and centres in
the UK, including its Knightsbridge store which was opened in February this
year - its first shop inside the M25.  It has distributors throughout the
USA, Europe, South Africa and Australia.
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