Pension funds consortium buys Red Funnel

Isle of Wight ferry company Red Funnel has been sold to a UK and Canadian pension funds group.

More than 400 people work for the company, which had been owned by Infracapital – part of Prudential.

A consortium, led by the West Midlands Pension Fund and the Workplace Safety and Insurance Board of the Province of Ontario, has bought the firm.

Southampton-based Red Funnel declined to say how much it was sold for, the BBC reported.

But the operator said the sale was not related to plans for a new terminal in East Cowes being rejected last year. It added operations and fares would be unaffected.

Michael Campbell, director of the consortium, said: “We are pleased to continue the tradition of investment in this proud 150-year-old company.”

Red Funnel had been owned by Infracapital for 10 years. Infracapital also has a stake in port of Southampton owner Associated British Ports.

Red Funnel carried more than 873,000 vehicles and 3.4 million passengers last year, compared to 555,000 vehicles and three million passengers in 2006, the firm said.