A £215m deal to buy North-East engineering firm Domnick Hunter was hailed as positive news for its 800-strong UK workforce last night.

The firm in Birtley, County Durham, said it had agreed a takeover by industrial products group Parker Hannifin - a company that employs more than 50,000 people in 46 countries worldwide.

The deal will boost Domnick Hunter chief executive Colin Billiet and chairman Brian Thompson, whose combined shareholding is valued at about £15m.

Domnick Hunter, which specialises in air purification for fizzy drinks companies, is expected to benefit from Parker Hannifin's sales channels, while Parker said the deal extended its reach in the European air filter market.

Mr Billiet said the deal was positive for Domnick Hunter's workforce.

He added: ''Parker Hannifin is committed to further developing the Domnick Hunter business and building on its track record of success which will provide new and interesting challenges for our employees."

The deal comes during a time of positive trading for Domnick Hunter, following a strong second quarter performance and slightly improved profits of £12.8m in the year to December 31, 2004.

Other projects have included the development of on-board vehicle systems to protect armies from chemical and biological warfare agents.

The offer values Domnick Hunter shares at 605p - a 51.1 per cent premium on the average price in the 30 days ahead of the company revealing it was in takeover talks on July 25.