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Aga Rangemaster, maker of upmarket cookers and kitchen ranges, has agreed a deal to buy a rival cooker maker.

The Leamington company has bought the business and principal assets of Mercury Appliances, the domestic range cooker manufacturing arm of Lincoln-based Lincat.

Lincat said, in a statement to the London Stock Exchange, it had raised £425,000 from the disposal, which is expected to more than cover the costs of exit from this business.

In the year to December 2008, Mercury made a pre-tax loss of £130,000 on a turnover of £1.8 million.

Lincat chairman Martin Craddock said: "Mercury has achieved much since it was launched by the group in 2000 but we recognise that it will enjoy better prospects and a more secure future as part of a larger organisation such as Aga, which operates solely within the domestic appliance market.

"I would like to pay tribute to the staff of Mercury and especially to Jenny Hyatt, Mercury's managing director, who will be taking the business forward under Aga's ownership."

Aga, which is a supporter of the Birchfield Harriers athletics team, turned over £279.4 million in 2008, compared with £291.8 million the year before.

The company saw its operating profit more than halve, from £24.4 million in 2007 to £11.1 million. 


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