HUNDREDS of the region’s food workers were reassured over their firm’s future last night after the sale of meat-free brand Quorn in a £205m deal.

The UK’s biggest food producer, Premier Foods, announced that it had reached an agreement to sell its subsidiary, which has its production hub in North Yorkshire, to a private equity consortium.

Exponent Private Equity and Intermediate Capital Group (ICG) are to buy the meat-free division, which also includes Cauldron, following more than three months of speculation about a sale.

Quorn’s production hub is in Stokesley, North Yorkshire, where about 320 workers are employed, with a further 62 staff working on the brand at a separate facility in Billingham, near Stockton.

There is not expected to be any impact on jobs as a result of the deal, which should be completed by the end of next month.

Last night, Exponent said it intended to expand the business.

Founding partner Chris Graham said: “We are pleased to be acquiring Quorn and Cauldron, which are strong and robust brands with a loyal customer base.

“With additional investment, both in the UK and internationally, we believe we can grow the business further.

“It fits well within Exponent’s portfolio which focuses on prominent and distinctive businesses.”

The private equity group also has stakes in thetrainline.com and bed store Dreams.

ICG provides mezzanine finance, leveraged credit and minority equity to companies worldwide.

Premier’s meat-free division made revenues of £128.8m and a trading profit of £16.2m last year.

However, Premier had been under pressure to reduce a £1.4bn debt, following a takeover spree in recent years, which included Hovis owner RHM and Campbell’s Soup in the UK and Ireland.

The group started struggling with its debts during the credit crunch in 2008, and was forced to complete a £400m share placing to raise cash in early 2009.

Robert Schofield, chief executive at Premier, said: ‘‘We are pleased to have concluded this sale agreement.

It makes a significant contribution to reducing our debt.’’ He said the deal was a “step along the road to achieving a capital structure which we believe will be more attractive to investors”.

Quorn, purchased for £172m from Marlow Foods in 2005, was valued at between £200m and £250m.

The first Quorn product was launched in 1985 using a specially developed protein-based ingredient called mycoprotein. It has since become a popular meat substitute.

Cauldron offers a range of tofu products and vegetarian sausages.