Be Modern, one of the UK's largest fireplace manufacturers, has acquired Shropshire-based Broseley Fires as part of a seven-figure deal.

Founded in 1964, Be Modern has sites at Western Approach, South Shields, and Bede Industrial Estate, Jarrow.

The deal will help safeguard 366 jobs and provide the money for innovative product development.

Be Modern has shed jobs in recent years, including 30 redundancies in late 2005, but it is hoped the new acquisition will strengthen its position in the market.

Richard Appleby, managing director of Be Modern, said: "Broseley is a very experienced and successful company, which supplies independent fireplace and stove retailers with high quality products.

"I can confirm that Broseley will continue to fully support its customer base, and that Be Modern will provide the resources to allow future product development, particularly in the eco arena of the heating industry."

With more than 80 years of combined experience in the fireplace and heating industry, Be Modern and Broseley sell through a wide range of retailers, including independent showrooms.

Despite the recession, both family-run businesses are performing well, with a new combined turnover of more than £30m.

John Reeves, managing director of Broseley Fires, said: "I am personally very excited about signing the deal. It means the business can quickly expand via additional investment in innovation and by making the most of new markets Be Modern can offer.

"It was very important and is a great source of pride for me to note that Broseley Fires will continue to trade under our 37-year-old family name and will still run from our Shrewsbury base.

"Broseley has been a successful, innovative business as a stand alone. Now, with the investment and knowledge of Be Modern, we will continue to move towards our ambition of being one of Europe's leaving stove brands."