A MULTI-MILLION pound deal has transferred a company's ownership back from Australia to its North-East home town.

A four-strong local management team at the engineering company Lionweld Kennedy, based in Middlesbrough, has bought the operation from Pacifica Group, of Melbourne, Australia, for an undisclosed sum.

The team had the backing of the Bank of Scotland Corporate Banking's Newcastle office. Pacifica will retain a minority investment in the business.

The move follows a positive period of investment and improvement in the business under Pacifica's ownership. The Australians have divested a number of operations worldwide as they concentrate on their core automotive business.

"This is an excellent result following detailed negotiations," said Lionweld Kennedy managing director Rod Samimi.

Lionweld Kennedy, which has a turnover of more than £30m, has a staff of 300, manufacturing facilities in Marsh Road and at the Riverside, in Middlesbrough, as well as a galvanising plant in Hartlepool.

The company designs, manufactures, fabricates and project manages a range of open grid flooring and handrail products for the construction and engineering industries.

In addition to this core activity, it is a key player in the highways sector through the provision of road safety barrier and highway bridge parapets.