A new subsidiary trading as Esh Border Construction has been formed to target expansion in Cumbria and the Scottish Borders.
It is expected to double turnover to around £60m in the region, with the backing of Esh Group.
Esh Group has been steadily built up on the back of smaller £2m-3m jobs and now turns over £200m, with 1,000 staff operating out of offices in Durham, Cramlington, Leeds and Kendal.
Brian Manning, chief executive of Esh Group, said: “We have built up a good business out of our Kendal office over the last four years and this acquisition gives us the opportunity to cement our position in both Cumbria and Scotland where Border has considerable turnover.
“The culture of Esh Group involves working closely with the communities in which we operate and that includes employing local people.
“We believe Border Construction’s culture of quality work with dedicated employees will fit well with our model.”
Border Construction has picked up several big projects in recent years, including the Robert Burns National Birthplace Museum in Ayr (£10m), the extension and refurbishment of Trinity School, Carlisle (£18m) and Denton Holme Student Village, Carlisle (£10m) .
Peter Conway, Managing Director of Border Construction, said: “This is a good fit for Border Construction and an opportunity to move the business forward.
“Esh Group has a very good reputation for business building and this deal will bring financial stability with it. Our team here is looking forward to working together with their new colleagues at Esh Group.”
Manning added: “We also want to thank the owners of Border Construction, Hal McGhie and Anne Rafferty, for the professional manner in which the sale has been conducted.
“The negotiations throughout the process have been entirely constructive, avoiding unnecessary anxiety for all parties.