Morley Estates has sold a 51-acre site in Ellesmere Port to national peat processing group William Sinclair Holding for a new headquarters.
Sinclair is consolidating at Ellesmere Port after a nationwide search and will relocate from bases in Cumbria and Lincolnshire.
The site acquired on South Road and Bridges Road contains 410,000 sq ft in existing buildings which will be retained for occupation by Sinclair.
Morley bought the site from BP two years ago. BP used to make Castrol motor oil there. Morley also owns further development land neighbouring the site.
Sinclair anticipates a phased occupation of the new site as it expands its operations into new areas including increasing production levels of SuperFyba, its sustainable peat-free garden product.
The news maintains a run of major industrial deals in Ellesmere Port led by Jaguar Land Rover and Regatta.
The move could see up to 250 direct and indirect jobs created in the west Cheshire town.
Robert Mee, chairman of Ellesmere Port Development Board, said: "Today's news shows that the town is continuing to be successful in attracting new businesses because it provides good value, good communications and a good location and we are now working closely with them to secure local employment opportunities for Ellesmere Port residents.
"There is still land available in Ellesmere Port for purpose-built developments and with a 'can do' attitude from the Development Board and Cheshire West & Chester Council, I look forward to working with more developers in the future and creating job opportunities – especially for our young people."
Bernard Burns, chief executive of William Sinclair Holdings, said: "We looked closely at over 50 sites in our search for suitable premises to support the company's growth strategy and Ellesmere Port's offering was unmistakeable.
"We estimate that Ellesmere Port will reduce the distance travelled by our vehicles by more than one million miles each year and lead to significant improvements in service levels enjoyed by our customers in an industry where speed of delivery is critical.
"Purchasing the site is a significant strategic development for William Sinclair and will provide the company with the right facilities to capitalise on the expanding horticulture industry and consolidate its market leadership."
Legat Owen and B8 Real Estate advised Morley; and WHR Property Consultants acted for Sinclair.