More than 500 jobs at a Blackpool biscuit factory have been safeguarded after the company was snapped up by a private equity firm.

Expansion plans are already in the pipeline at Burton's Foods, Devonshire Road, following a deal rumoured to be worth £210million.

The company is the UK's second biggest biscuit manufacturer and employs more than 500 people at its Layton site.

The buy-out by Duke Street Capital follows the sale of the confectionery arm of the business last year to local sweet manufacturer, Tangerine Confectionery, Clifton Road, Marton.

Duke Street Capital partner Colin Curvey said expansion plans were currently being discussed.

He added: "Burton's makes some of the best known biscuits on the market and is in a great position to continue its recent growth. We are very excited about working with Burton's Foods and supporting such a capable and proven management team and its ambitious plans."

The Wagon Wheel biscuit firm employs more than 3,000 people across the UK and has four bakeries in Edinburgh, Blackpool, Moreton and Llantarnam, Gwent, with a distribution centre at Knowsley and a head office in St Albans.

It will continue to make the same products including Jammie Dodgers, Maryland Cookies and a range of Cadbury's chocolate biscuits, but the new owners have also launched a range of Bertolli savoury snacks with consumer products giant, Unilever.

The business has been on the market since November when owners HM Capital - formerly Hicks, Muse, Tate and Furst who acquired Burton's from Associated British Foods in December 2000 for £130m - appointed advisers to conduct a review of the business.

Burton's was founded in the 1930s under the name of Burton's Gold Medal Biscuits and was acquired by Associated British Foods in 1949.