Glen Dimplex, the electrical company owned by the Louth-based Naughton family, has agreed to sell its Morphy Richards home appliances brand in a deal believed to be worth between €175 million and €200 million.

The brand is to be bought by stock market-listed Chinese company Guangdong Xinbao Electrical Appliance Holdings (Xinbao), which trades under the brand Donlim. The transaction is subject to Chinese government approval, and it is expected to close by the end of the year, staff at Glen Dimplex were told.

Morphy Richards is a British brand that was acquired by Glen Dimplex founder and industrialist Martin Naughton in the mid-80s. Its toasters, kettles and other home appliances are sold in China, Ireland, the UK, Australia and New Zealand, with worldwide retail sales estimated at more than €350 million.

Xinbao, which already manufactures Morphy Richards products in China for Glen Dimplex, is buying the brand globally, but initially it will take full control only of the Chinese and British operations – Glen Dimplex will keep rights to distribute the brand under licence in Ireland, Australia and New Zealand for “at least” 10 years.Glen Dimplex staff were told of the deal on Wednesday in an email from Fergal Leamy, the chief executive of the Glen Dimplex group. He said the Irish company decided to sell after it received an approach from the Chinese buyer.