Morgan Sindall has swooped on a private construction company that went into administration on Monday.
Bluestone, the regional construction arm of Morgan Sindall, has spent £3m on three parts of Benson Group. These are located in Reigate in Surrey, Hatfield in Hertfordshire and Southampton.
The three divisions have a total of 38 active contracts and employ 175 staff, all of whom have transferred to Bluestone.
The acquisition boosts Bluestone’s coverage in the South-east, where it has been weak.
Paul Smith, Morgan Sindall’s chief executive, said: “We heard about it late in the day, but the administrators were very anxious to secure a quick sale to save jobs and the business.”
Michael Gercke, an accountant at Pricewaterhouse Coopers, was handling the administration process on behalf of the Benson Group. He was unavailable for comment.
The price of shares at Morgan Sindall rose 22p on Tuesday after a trading update in which it predicted higher than expected profits from its affordable housing division for the year to 31 December. The price peaked at 500p.
Morgan Sindall has increased its market share in fit-out work, which it identified as a second area with strong potential for growth.