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 3 million passengers in 2006, the firm said.