T AND R Theakston, one of the most famous names in British brewing, is set to return to the founding family's hands after almost 20 years under Scottish & Newcastle.

Scottish Courage announced on Tuesday that it was in advanced negotiations with members of the family to return the company, including the brewery and all associated ale brands, to their control.

The Masham-based brewer - best-known for beers like Old Peculier - will be acquired by the heirs of the original founder, Robert Theakston, who set up the brewery in 1827.

Leading the business as executive directors will be Simon Theakston and Collin Wood, former managing director of Theakston. Other members of the Theakston family joining the board will be Nick, Tim and Edward Theakston.

Simon Theakston, the great-great-grandson of the founder, said: "This is a tremendous opportunity for the family firm of T and R Theakston.

"We are all 100pc committed to growing the Theakston company and protecting what is a very fine heritage for producing one of the best quality ales on the market.

"T and R Theakston will be a family-run brewery that looks to the future - and with a past to be proud of. What we will offer is authentic traditional ale and equally authentic, tastes, values, pubs and people."

Theakston employs 20 staff in Masham who will be responsible for brewing, sales and marketing. The company is one of the few brewers in the country which still employs a cooper.

Beers produced by Theakston include Best Bitter, XB, Old Peculier, Mild and Black Bull Bitter. A recent innovation has been the introduction of Cool Cask ale.

Simon Theakston said: "The family remain passionate about the company and we are determined to see it grow further - as a brewer Theakston still has a tremendous following among lovers of real ale and we regularly continue to win new customers.

"This company is now 176 years old and we are confident it will be around for a long, long time supported and nurtured by the Theakston family."

Collin Wood, executive director, said: "Theakston is one of the best quality ale brands in the UK and there is a terrific amount of goodwill out there among our wholesale, retail and drinking customers. We will look to build on those relationships and create a great business moving forward."

The completion of the deal is expected at the end of the month following a consultation process with the employees of the company.

T and R Theakston was established in Masham in 1827 by Robert Theakston.In the Eighties the company was acquired by Scottish and Newcastle.

Scottish & Newcastle will retain a minority stake in the business and will continue to offer the range of Theakston ales to its customers through its extensive distribution network.

* Paul Theakston, who founded the Black Sheep Brewery in Masham after a family rift, yesterday announced £3m plans to double brewing capacity to 26m pints a year.