SPECIALIST engineering business Darchem has been sold to Royal Bank Private Equity (RBPE) for £28m.

Darchem, based at Stillington on Teesside, was formerly owned by the Scottish-based Weir Group, and provides heat and fire protection systems and services for the aerospace, nuclear and petrochemical industries.

It employs around 800 staff, the majority of them based at Stillington.

The £28 proceeds realised by Weir comprise of £18m for the share capital of Darchem, £3m received under contractual commitments entered into by Weir and £7m of debts assumed by the purchaser.

At the end of September, Darchem had assets of £13.3m and recorded pre-tax profits of £2.6m in the nine months to September 30.

David Dunbar, chief operating officer of Weir, said the sale was consistent with Weir strategic direction for the future.

He added: "This disposal reflects our determination to focus our business.

"The proceeds will put us in a position to take advantage of emerging opportunities in our core activities."

Darchem managing director John Menzies said: "The change of ownership will accelerate the businesses growth in the growing international aerospace market.

"We are very excited about the future prospects for the company."

Commenting on the deal, Henry Gregson, director of RBPE, said: "Darchem has an outstanding reputation around the world in the markets it serves and represents an excellent platform for future growth."

RBPE formerly traded as Royal Bank Development Capital and has invested more than £500m in a variety of industry.