A DRAINAGE company is being taken over in a £28m deal.

Metro Rod Limited has been targeted by Franchise Brands.

Metro runs services across the North-East, with a depot in Middlesbrough providing emergency drainage works and maintenance to customers such as House of Fraser and Sainsbury’s.

The company, which complements work in the south of the region with a base in Morpeth, Northumberland, has also recently launched a plumbing division to increase its industry presence.

Colin Davis, Metro Rod managing director, said the deal would provide fresh scope for the operation to expand.

He said: “We are excited about developing the growth opportunities we see for Metro Rod and Metro Plumb as part of a larger, publicly listed group with a clear focus on developing its portfolio of franchise brands.”

Mr Davis, who has been managing director since 2013, will continue to manage Metro Rod following the acquisition.

Stephen Hemsley, Franchise Brands’ executive chairman, said the takeover reiterated his firm’s approach of buying franchise businesses that will benefit from its services and experience.

He added: “Metro Rod is a market-leading business with a mature and stable franchise network and high customer retention rates.

“We look forward to working with Colin and his team to expand the existing business’ customer base and develop Metro Plumb.”