A CROSS Solent ferry firm has been sold to a consortium of pension funds from the UK and Canada for an undisclosed sum.

Infracapital, owners of Red Funnel, agreed to sell its 100 per cent equity stake in the firm to the Midlands Pension Fund and the Workplace Safety and Insurance Board of the Province of Ontario.

It was announced in March that Red Funnel, which employs 450 people, has been put on the market with a price tag of £250m.

Australian bank Macquarie was instructed to sell the Southampton-based company on behalf of Infracapital, Prudential’s infrastructure fund.

Infracapital has owned Red Funnel since 2007 and has invested significantly in upgrading the fleet.

In 2016, Red Funnel carried over 873,000 vehicles and 3.4 million passengers, compared to 555,000 vehicles and 3.0 million passengers in 2006.

Ed Clarke, co-founder and director of Infracapital, said: "We are confident that Red Funnel will continue to grow under its new ownership and wish the business and its employees every success.”

The new owners say they do no anticipate making any changes to day to day operation of the firm.

Michael Campbell, director of the consortium, said: “We are delighted to acquire Red Funnel in a partnership comprising UK and Canadian pension schemes.

"Red Funnel, which plays a critical role within its community, is led by a strong management team and a committed workforce who are dedicated to delivering reliable, safe, essential Isle of Wight ferry services. We are pleased to continue the tradition of investment in this proud 150 year old company.”

Kevin George, CEO of Red Funnel, said: “We are very grateful for the support provided by Infracapital and our customers over the last 10 years. Red Funnel has benefited hugely from a wide-ranging programme of investment and improvement, and I’m delighted that these are being recognised with fantastic customer feedback and repeat visitors. We are all excited to be working with the consortium as we continue to grow the business and provide safe and reliable ferry services, value for money and great customer service.”

It was reported then that the Isle of Wight Council were interested in buying Red Funnel but it was thought that the price would be beyond them and the Infracapital would not confirm whether or not they received an offer from the island authority.

The council and Red Funnel have clashed over plans for a new terminal at East Cowes which would require moving and demolishing several existing business premises; the plans were turned down.

Although the firm has permission to expand its marshalling yard, proposals for a new terminal building have been rejected by Island councillors and are likely to be the subject of a planning inquiry in the summer.

Red Funnel already has permission to relocate its Southampton terminal to Trafalgar Dry Dock in the Western Docks which in turn would free up land for the £450 million Royal Pier development.

Last year Mr George said the two schemes had been ‘uncoupled’ and the Southampton terminal would progress regardless of the fate of the Island plans.

Asked if the sale would affect these plans Red Funnel said: "These plans are very important to Red Funnel being able to provide even better services in the coming years and therefore there will be even greater focus on being these developments to fruition."