Specialist trades distributor BSS Group has acquired UGS Limited for £5.1 million.
BSS, which distributes heating, ventilation, plumbing, and industrial supplies, bought family-owned UGS to enhance its offering in drainage and civils equipment.
UGS is a specialist distributor of below ground drainage and civils equipment to specialist contractors, trading from 10 branches across the UK.
For the 12 months ended 31 December 2009 it had turnover of £36.4m, but made a loss of around £40,000.
BSS Group chief executive Gavin Slark said: “We are delighted to secure the acquisition of UGS which will significantly enhance our capability to service the broader drainage market above and below ground.
“We see the area of drainage and water management as having significant growth potential in the coming years as infrastructure is upgraded and maintained.
“The business requires some repositioning and as a result it is expected to be earnings-neutral in the year to March 2011.
“From that point onwards we anticipate UGS will be earnings enhancing.”