A new company called Mouchel Energy has been set up for the deal which will see Mott pay cash for the business which provides design and project services to the gas engineering and energy markets.

Mouchel will use the money to pay down part of its debts.

During the year to 31 July 2010, the pipeline design business reported a post-exceptional profit before tax of £90,000 on net revenue of £4.7m.

The business is led and managed by Colin Brewster, who will remain with it under Mott MacDonald’s ownership.

Grant Rumbles, Chief Executive of Mouchel, said: “Following the recent agreement to sell Mouchel Rail, the sale of Mouchel’s pipeline design business is another key step in our strategy to focus on Mouchel’s leading positions in core markets. We wish the business and its employees every success for the future.”