MEAT substitute company Quorn Foods will continue to be based in North Yorkshire after being sold to a Philippines firm for £550m

Exponent Private Equity and Intermediate Capital Group have agreed the sale of Quorn Foods to Monde Nissin. The sale is expected to complete by October 30.

Quorn, which employs about 600 workers at its headquarters in Stokesley, plans to double production at its factory in Billingham, near Stockton, to create up to 400 jobs.

The firm exports to 15 international markets around the world and has experienced surging demand in 2015, with overall sales growing by 7 per cent over the last six months, at a time when most food manufacturers are seeing flat sales.

It continues to perform particularly well in the US where year-on-year sales are up 30 per cent. It has plans to grow the US business by 30 per cent annually - with the aim of building an American operation three times its current size by 2020.

Quorn’s Chief Executive, Kevin Brennan, said: “We have an ambition to be the world leader in meat alternatives, ultimately creating a $1bn business. Monde Nissin Corporation’s purchase represents a great step forwards in this ambition; they share our belief in the potential of Quorn, and provide capability to expand the brand into Asia.”

The company said it will continue to operate from Stokesley.

Monde Nissin’s chief executive Henry Soesanto said “Monde Nissin have been investing in “on-trend, better for you” products internationally in line with our strategy to become a global diversified food company. Quorn represents an important new leg in our offering. We are excited by the growth potential of the global meat alternatives market, which complements our strategy perfectly.”

Quorn’s main ingredient is a plant protein, which replicates the texture and taste of meat and is used to produce meat-free mince, nuggets, burgers and sausages.

Developed in the 1960s amid fears of a shortage in protein-rich foods, Quorn as a retail product was first produced in 1985 by Marlow Foods.

The group, which uses the Olympic champion Mo Farah as its ambassador, is ranked by market researcher Nielsen as Britain’s 35th biggest brand.