Barbeques Galore to delist in US

Australian backyard products company Barbeques Galore is set to fall into private hands as prospective investors look to turn the gas off its US sharemarket activity.

Australian private equity manager Ironbridge Capital said it was making arrangements to fund a $110 million acquisition of the US NASDAQ-listed company's shares and options with plans to subsequently delist it.

Ironbridge managing partner Paul Evans said it was offering current shareholders an opportunity to dispose of their shares at a price of $13 per ordinary share.

"The business has maybe not achieved a level of liquidity that it might have been looking for, which clearly presents an opportunity for the major shareholders to consider other options like us," Mr Evans said.

The proposed transaction is subject to shareholder and court approval by the Federal Court of Australia.

Barbeques Galore - formed in Sydney in 1977 - currently boasts 150 stores in both Australia and the US.

The Galore Group Ltd delisted from the Australian stock exchange in 1996 before listing in the US in 1997 as Barbeques Galore Ltd.

Part of the ownership restructure includes board changes with Just Group chairman Jonathan Pinshaw to become chairman of the company.

Ironbridge said current executive chairman Sam Linz, executive deputy chairman Robert Gavshon and US chairman Sydney Selati will cease employment but make themselves available to the company if required.

However, Mr Evans said while there would be a change in ownership structure, the company's operations were unlikely to change significantly.

"We expect as a new investor to be working alongside the existing management team supporting their strategies," Mr Evans said.

"Clearly the business has got a great market condition.

"It's been a business that has grown successfully in the past and we believe its well positioned to continue that growth."

Barbeques Galore is expected to mailing details of the proposal early September with a special shareholders meeting anticipated four weeks later.