ENGINEERING group Wyko is close to sealing a management buy-out deal valuing the industrial distribution and engineering group at £92.2 million.

The company, which operates the Swan Bearings site in Blackburn, said it was in continuing discussions with a management-led consortium over a bid at 129p a share.

In a statement to the Stock Exchange, the company said: "The board of Wyko hopes to make a further announcement in the very near future regarding the group's plans."

Wyko announced in February that it was considering a range of future options for the group, including a management buy-out.

The management team is being backed by Royal Bank Development Capital, the venture capital arm of the Royal Bank of Scotland. Additional financing will come from the Bank of Scotland.

If a bid emerges at 129p a share, it will mark a premium of more than 50 per cent above Wyko's share price before the February announcement was made.

The buy-out team is being led by Richard Johnson, chief executive, Geoff Winters, finance director and Philip White, the chairman who founded the company.

Wyko has suffered from the poor appetite among City investors for small and medium sized companies.

A falling share price in the months before talks were announced is thought to have made it tough to raise cash for expansion.

Wyko employs 2,300 staff, mostly in the UK.

It has 106 British industrial distribution branches and 32 electro-mechanical services operations across the UK.

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