The deal is part of a new strategy to target growth in key regions around the country where Galliford Try Partnerships has yet to establish a presence and can increase the supply of new homes.
Based near Southampton, both Drew Smith Limited and Drew Smith Homes, allow the firm to open up in the Southern region.
The housing group has grown steadily since being set up over 25 years ago to employ around 80 staff. According to most recent company accounts Drew Smith achieved revenue of around £50m generating a pre-tax profit of £3.3m in 2015.
The current management team and staff at Drew Smith will remain in place, working within the Galliford Try group to accelerate their growth plans.
Stephen Teagle, chief executive of Partnerships & Regeneration for Galliford Try, said: “We are really excited to have reached agreement with Drew Smith which is a great fit for our growing business.
“The Southern region holds great potential for us to expand our regeneration offering and help accelerate delivery.
“We look forward to working with new and existing clients to bring forward opportunities to increase the supply of new homes in the area.”