TOP Hereford firm Denco has sold part of its operation to big business buyer from the USA.

Denco Lubrication Limited has been bought by US-based Biju Lubrication Group but will stay in the city at a new HQ.

Denco Lubrication has been a part of the core Denco air conditioning business since the 1950s and specialises in supplying lubrication components and maintenance to industry.

Mark Shutler, managing director of Denco Limited, said the sale was a "strategic opportunity".

The Bijur Lubrication Group of North Carolina is an international market leader with plants in China, France, Germany and Ireland. Bijur will develop Denco Lubrication in the UK as part of its Delimon division.

Denco Lubrication's staff will transfer to new offices and workshops in the Hereford area soon.

Denco Lubrication is the second Denco operation to be sold as the Holmer Road company prepares for a summer move to Moreton-on-Lugg.

In October, Denco announced the sale of its associate Franklin Hodge Industries to the Birmingham-based Carter engineering group.