NG Bailey has acquired Engineering Solutions Group (ESG), adding a £30m-turnover engineering business with about 180 staff to expand its presence in the water and infrastructure markets.
The Leeds-headquartered engineering services group said the deal would strengthen its infrastructure delivery offer and widen its access to water sector work during Asset Management Plan 8 (AMP8).
NG Bailey said AMP8 would see £104bn of investment over five years, about double the level in the previous cycle, creating opportunities in water infrastructure upgrades and innovation.
ESG, which is based in Sutton-in-Ashfield, Nottinghamshire, was founded in 1989.
Its main business, ECS Engineering Services, is supported by three other group companies covering mechanical and electrical engineering, specialist steel and composite fabrication, civil engineering, and water control products.
Its customers include the Environment Agency, Severn Trent Water, Anglian Water, Welsh Water and Yorkshire Water.
NG Bailey said ESG’s management team would remain in place and continue to run the business under its existing brands. The acquired company will sit within NG Bailey’s Built Environment division.
The transaction will take NG Bailey’s total headcount to more than 3,600.
NG Bailey chief executive Jonathan Stockton said: “Bringing ESG into the NG Bailey family is a decision which makes both strategic and commercial sense as we continue to deliver our Journey to 2030 business plan.
“The acquisition provides a natural extension to our existing range of services and strengthens both our market positions, whilst opening up new growth opportunities for us in key areas including water infrastructure.”
Stockton said ESG’s track record included the Colwick Sluice refurbishment for the Environment Agency, as well as fabrication work in the nuclear sector.
ESG managing director Mark Watkins said the deal marked “an exciting milestone” for the business after four decades of trading.
NG Bailey did not disclose the value of the acquisition.