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2nd December 2005
Aga has accelerated further its North American consumer expansion plans with the purchase of the Cambridge, Ontario based premium cooker and refrigeration operation, Heartland Appliances. Heartland cookers and stoves, which have well established niche positions in Canada and the US, fit easily with the look and market position of Aga’s existing brands. Aga is paying C$3.0 million for Heartland, equating to its net assets, with up to a further C$1 million linked to the Group’s growth in sales over the next 3 years in Canada where Heartland’s Managing Director, Brad Michael, will be the Group’s Country Manager. Heartland’s turnover in the year to March 2005 was C$11 million (£5.5 million) – half of which was sales to the US – and it broke even.
Heartland will be part of Aga’s North American appliances operation which includes the Victory and Northland-Marvel refrigeration brands.
“With the Aga Group’s product range available to us, we can build on Heartland’s strengths and become Canada’s major premium appliance operation. It is a great opportunity for the Heartland team.” : Brad Michael, Managing Director of Heartland Appliances.
“Heartland again adds to our formidable international premium appliance position and will help us accelerate further sales in North America – a key target market for us.” : William McGrath, Aga Foodservice Group, Chief Executive.
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