The deal to buy vehicle and equipment supplier Translinc will see 400 staff transfer over to May Gurney.

Translinc also specialises in providing passenger transport and fleet management for local authorities with 2,800 vehicles currently under its control.

May Gurney said the deal would strengthen its position in the highways maintenance market where the provision of plant and equipment is increasingly called for in “bundled” tenders.

Translinc currently works with 40 customers with 90% of its business in the public sector.

The firm has a current order book of £85m and for the year to 28 February 2011 had a turnover of £34.7m.

Philip Fellowes-Prynne, Chief Executive of May Gurney, said: “This acquisition is a good strategic fit and is expected to be earnings enhancing in the first year.

“It brings into the May Gurney Group a portfolio of services and clients which are highly complementary to our existing business, augmenting our strong positions in Highways and Environmental Services as well as further establishing the Group as the leading support services business in the UK.”