THE creator of TV shows Hollyoaks, Grange Hill and Brookside last night sold his production company to a rival.

Phil Redmond, who founded Mersey Television with his wife, Alexis, 23 years ago, sold the business to All3Media, the company behind the Richard and Judy show and Channel 4 comedy Shameless.

The exact terms of the deal were not disclosed, but it is thought to be worth more than £35m.

All3Media has appointed Carolyn Reynolds, former controller of drama at Granada, as chief executive of Mersey TV.

She will oversee the development of shows such as Channel 4's recently-commissioned drama based on Hollyoaks.

Mr Redmond will remain executive producer of Grange Hill and will also offer creative ideas to All3Media.

He said: "This is not the end of anything, but the beginning of a new chapter in the lives of Mersey, Alexis and myself."

All3Media chief executive Steve Morrison - former boss of Granada - said Mr Redmond had been very much ahead of his time in setting up Mersey TV, founding an independent before it was fashionable to do so.

Mersey received £11m of funding when it was backed by venture capitalist Lloyds Development Capital (LDC) in 2002, giving it what was described as a significant minority shareholding.

All3Media is known for shows such as Midsomer Murders and The Life and Death of Peter Sellers, as well as Channel 4 show Richard and Judy, which is made by its production company Cactus TV.