GRAND Central Railway (GCR) was last night acquired by a private investment firm.

The York company, which plans to operate three daily services between Sunderland and London King's Cross from May, said the move had secured its future and independence.

In December, GCR's major shareholder, the transport company Fraser Eagle, revealed it was considering offers.

It has now sold its shareholding to the investment firm Equishare.

All Grand Central employees, including managing director Ian Yeowart and operations director Sean English, will remain with the company.

Mr Yeowart said: "This is the best possible type of takeover in that everything remains in place as it is.

"If we had been sold to another train or bus operator we would have become a very small player in a very big pond and lost our identity."

A number of boardroom appointments have been made including the addition of Giles Fearnley as chairman, Bob Howells as vice-chairman and two directors, Philip Moody and Phil Gartside.

Mr Yeowart said: "We are delighted to have secured our continued independence and the management expertise and financial resources that Giles, Bob and their team bring to us.

"The new team has a formidable track record in successfully developing rail businesses and we very much look forward to working with them."

New chairman Giles Fearnley said: "We see great potential for developing Grand Central into a major UK train operating company."

GCR, which has its head office in York, has 11 drivers undergoing an intensive training programme, with all remaining staff joining the company later this month. It recently announced that it had been granted the necessary safety certificate by rail regulators to operate its services.