Kitchen specialist Aga Foodservice is to become a slimmer business after agreeing a £260 million sale of its commercial equipment arm.

The proposed deal will allow it to focus on consumer brands including Aga, Rangemaster and Marvel.

The disposal follows the failure last year to merge with UK-listed foodservice company Enodis.

Italian equipment manufacturer Ali will acquire Aga's commerical business, which includes Bongard and Pavailler, in a cash transaction.

Aga operates in 12 countries but is best known in the UK for Dawson Foodservice Equipment. The Barnsley-based operation supplies dishwashers, cooking equipment, steamers and refrigeration equipment to the UK commercial catering market.

Management said it would distribute a significant proportion of the sale proceeds to shareholders during Q1, 2008. It will also contribute £32.5 million to the group's pension scheme.

Chief executive William McGrath said: 'It is pleasing to agree this sale at a good price to a group which is already driving change in the foodservice equipment sector. We will now focus on developing our consumer operations and on the best way of delivering value to shareholders.'

Future growth will come organically rather than acquisitions, added McGrath.

Chief operating offer Stephen Rennie will step down from the Aga board and move to Ali. Chairman Victor Cocker will also resign from Aga once the commercial equipment division deal completes.

Shares in Aga have more than doubled in the past three years as demand grows for its upmarket cookers. Today's disposal helped to lift the share price a further 3% to 441p in early morning trade.