Contractor Alfred McAlpine has made the first of an expected double acquisition in the infrastructure market.
McAlpine announced the purchase of UK Power, an electrical services business, last Friday for £5.2m in cash. Earlier in the week, a McAlpine source told Building the firm was looking at two infrastructure firms but had ruled out buying Peterhouse, which is currently in takeover talks.

UK Power will be integrated into McAlpine's infrastructure services division, which focuses on utility and highway renewal and maintenance services.

Ian Grice, chief executive of McAlpine, said: "We have worked with UK Power for some time and we know that it is a successful, well managed company providing high quality overhead line services."

He added: "This is a burgeoning marketplace and this acquisition will extend our coverage in the UK and Ireland."

In the year to March 2003, UK Power had sales of £5.8m and made an operating profit of £0.8m.

We have worked with UK Power and we know it is a successful, well managed company

Ian Grice, chief executive, Alfred McAlpine