A management buy-out deal has saved 160 jobs at the UK's largest vent and flue manufacturer.

Rite-Vent, based in Washington, Tyne and Wear, was on the verge of being sold to a competitor who wanted to take production south until a deal was struck to keep work in the region.

Venture capitalists Granville Baird, which owned an 80 per cent share of the business, was faced with selling to a firm which planned to relocate work to Barnstaple before the MBO deal was struck.

As well as saving 160 direct jobs, a number of sub-contractors in the area will also keep important contracts.

The local management team, lead by managing director Quentin Spratt, seized the chance to bid for its purchase and subsequent survival in Sunderland, but with another buyer already lined up, time was limited.

Sunderland City Council and Tyne and Wear Development Company helped set up a prompt rescue package.

Quentin Spratt, managing director and major share-holder in the Rite-Vent buyout, said: "Rite-Vent has been owned for the past 7 years by a venture capitalist and we firmly believe that the company will now benefit from this buyout.

"We have the full support of our staff, workforce and customers both in the UK and in overseas markets. Indeed, a number of our overseas customers and one of our major suppliers have invested in the buyout."

Rite-Vent is one of the North-East's top 100 companies. Based at a 106,000 sq ft factory on Crowther Road, Washington, it exports 45 per cent of its production overseas, including most of Europe and Japan.