THE OWNERS of The Baxi Group, Britain??s biggest boilermaker, have hoisted a ??for sale?? sign over the company, The Times has learnt.

Baxi, which was set up as an iron foundry in 1866 by Richard Baxendale, was put on the block last week after Candover Investments and Electra Partners Europe, the private equity firms that own the company jointly with Kidde, the fire protection group, appointed Merrill Lynch to sound out potential buyers.

The owners are understood to have targeted a price of about ??800 million for the company. This includes the assumption of several million pounds of debt already in Baxi.

Baxi, which has its headquarters in Derby, switched from being an iron founder making bakers?? ovens to heating appliances in the 1930s and these days is best known for its Bermuda range of gas-powered coal and log fires. It also makes radiators, central heating boilers, hot water heating and storage units and showers.

The company, which is led by Mark Edwards, chief executive, and employs about 5,500 people across Europe, has annual sales of about ??1 billion (??699.6 million).

Candover and Electra??s investment in the company dates back to 1996 when they jointly acquired 15 businesses from Williams Holdings and named them Newmond. They then bought Baxi and merged it with Newmond in 2000. Kidde inherited a 25 per cent stake in Baxi in 2000 when Williams demerged into Chubb and Kidde.

In a separate development, Kidde announced a better-than-expected 32 per cent rise in first half pre-tax profits to ??41.4 million, as the fire safety company reversed two years of slowing organic sales. Total revenues increased by 3.5 per cent to ??429 million.

Michael Harper, chief executive, said that the order book stood at ??280 million at the end of June, 8 per cent higher than at the start of the year. He said most of the order book would translate into business in the second half.

Mr Harper added that the outlook for the residential and commercial division, which accounts for about 20 per cent of group profits and sells home safety products such as fire extinguishers, was also set for a good second half in the US. The US division, which accounts for about 90 per cent of that unit??s total sales, has signed exclusive supply deals with two thirds of Wal-Mart and Home Depot stores.

The company??s interim dividend rises to 0.89p, from 0.85p last time. Kidde??s shares fell 1p to close at 105p.