A DEAL between a major Canadian distributor and the administrator to former Caterpillar supplier McCormick Macnaughton (NI) Limited will save 50 jobs in the North.

Finning International Inc, one of the world’s largest Caterpillar equipment dealers and a major player in the UK market, has agreed to acquire certain assets and contracts from the administrator for a price tag of more than £3 million.

Finning is also in negotiations with the receiver of McCormick Macnaughton in the Republic to acquire its Caterpillar dealership. A receiver was appointed to two McCormick Macnaughton companies in the Republic last month.

All existing employees in the North will be re-employed by the new owner of the dealership. McCormick Macnaughton (NI) is based at Blaris Industrial Estate in Lisburn; it had employed 56 people before it went into administration in June. Garth Calow of PricewaterhouseCoopers was appointed administrator, while Billy O’Riordan of the same accountancy firm took on the receiver role in the Republic.

Mr Calow confirmed yesterday that Finning is discussing the acquisition of the Caterpillar dealership in the Republic.

The Canadian group, which has been trading since 1933, is based in Vancouver and operates in Canada, Chile, Argentina, Bolivia, Uruguay and the UK.

Mr Calow said he was delighted to have reached a successful conclusion to a “difficult process”.

“This has safeguarded jobs and maintained a key construction equipment dealership within Northern Ireland,” he said.

McCormick Macnaughton, owned by businessman Malcolm Macnaughton, operated branches in Dublin, Lisburn and Cork. The company was behind a large office and industrial development at Rathcoole in Co Dublin just as the property market began to fail.