The deal will save around 300 jobs at UKDN Waterflow and boost Lanes’ operations in the highways, rail, utility, insurance and commercial sectors.

Wayne Earnshaw, Managing Director of Lanes Group plc said: “The acquisition of these businesses is part of our continuing expansion strategy.

“It will contribute to our business growth, in terms of our ability to serve current customers, and attract new ones.”

Administrators Deloitte were appointed at UKDN Waterflow last week.

The firm operates from 17 sites across the UK including main offices in Birmingham and Slough.

It is a national provider of water, wastewater, drainage & infrastructure solutions to the insurance, commercial, residential, industrial, transport, water & public sectors.

Despite an operational restructuring UKDN  was unable to raise the additional funding to complete its turnaround.

Matt Cowlishaw, Joint Administrator, said: “The Group has an excellent reputation and blue chip customer base which coupled with the recent operational restructuring meant that the business was well positioned for someone to invest and grow revenue.

“The going concern sale preserves the jobs of 300 employees and provides the best outcome for creditors in the circumstances”