Galliford Try has bought Miller Construction for £16.57M.
Miller Construction posted turnover of £409M for the year to 31 December 2013, but made a pre-tax loss of £4M.
The firm brings an order book of £1.4bn which doubles Galliford’s forward orders to £2.8bn.
Galliford Try said the acquisition represented “attractive value” and fitted its “strategy of disciplined and selective growth in its construction business, with a particular focus on developing our positions on regional and national frameworks”.
Its construction turnover has now grown “towards £1.25bn” with a 2018 target of “circa £1.5bn”.
Galliford has identified £7M a year of cost synergies, which it expects will take place over the next year. This will mean one-off restructuring costs of £4M.
Greg Fitzgerald, chief executive of Galliford Try, said: “The acquisition brings together two construction businesses with a strong strategic fit and accelerates our strategy of growth into an improving marketplace.”