Contractor Morgan Sindall has bought social housing maintenance contractor Powerminster Gleeson Services from the MJ Gleeson Group for £6.6m

Paul Smith, chief executive of Morgan Sindall Group, said: “This gives our existing response maintenance business significant critical mass, creating a nationwide offering and substantially enhancing the range of services we provide.”

The business will sit within Morgan Sindall’s existing social housing contracting business, Lovell, as part of the Lovell Respond unit.

The deal will result in the retirement of Chris Holt, chief executive of MJ Gleeson. Finance director Alan Martin will also act as chief operating officer.

Powerminster Gleeson provides repair and maintenance, M&E and responsive repairs services, primarily for the social housing sector. It has six contracts with large PFI housing improvement schemes, including a £48m deal with Leeds council for its social care homes.

Turnover and profit at Powerminster Gleeson have fallen during the recession, with half-year profit down 19% to £229,000 in the last six months of 2009 on the equivalent period in 2008. Sales were down 5% in the same period.