BOB The Builder will soon be working for a new boss after the company behind the children's characters agreed to a £489m takeover.

Hit Entertainment, which also owns Thomas The Tank Engine, Barney the dinosaur and Guinness World Records, is being bought by private equity firm Apax Partners - the company that is also bidding for retailer Woolworths.

The proposed deal has been backed by Hit's independent directors and has so far secured the support of shareholders owning 35 per cent of the 16-year old company.

Peter Orton, chairman and founder of Hit, said he believed new ownership would prepare Hit for its next stage of growth at a time when markets were tough and the future was not without significant risk.

The harsher trading conditions were highlighted in half-year results as Hit also said that underlying profits had fallen by nearly half to £13.3m, while turnover was down by £22.6m to £70.2m.

The decline was blamed on the weaker dollar in the US, where the consumer licensing and home entertainment markets have also been weak.

Hit hopes its prospects will improve through moves to revitalise the Bob The Builder brand and the launch of a pre-school digital television channel in the US this year.

During the half-year, Bob The Builder accounted for 15 per cent of group revenues, with Barney generating 19 per cent and Thomas The Tank Engine - now in his 60th year - representing 23 per cent of total turnover at £16.3m, a 16 per cent rise on last year.

Published: 22/03/2005