Contractor Balfour Beatty is to acquire civil engineering firm John Kennedy Holdings for 拢43m.
Manchester-based Kennedy employs about 1200 people and comprises two businesses, John Kennedy Civil Engineering and Pipeline Consultants. The civil engineering arm provides underground maintenance and renewal services to gas and water firms, and Pipeline Consultant provides design and management services to water companies.

Balfour Beatty chief executive Mike Welton said the deal expanded the group's infrastructure services businesses.

He said: "The acquisition provides us with a quality business, which has a significant opportunity to grow with the fast-expanding requirements for maintaining and upgrading utility networks." In the year ending 31 March, Kennedy had sales of almost 拢73m and an operating profit of 拢4.5m.

It has a forward order book in excess of 拢200m, according to Balfour Beatty.

The firm will be bought from its current and past management and from clients of Aberdeen Murray Johnstone Private Equity, with whom a management buyout was executed in 1997.

Kennedy's customers include Transco, Southwest Water, United Utilities, Severn Trent Water, Yorkshire Water and the Scottish water authorities.

  • Balfour Beatty also announced that Sally Brearly has been made the group's safety and environment director.

    Brearly, who starts her new job in January, will join from Railway Safety, the company formed from Railtrack's safety and standards directorate.

    She will report directly to chief executive Mike Welton.