Kier Group has agreed to acquire all of the rail assets of Buckingham Group Contracting Limited, which was in administration, for £9.6m.

The deal also includes the takeover of Buckingham Group’s HS2 contract supplying Kier’s HS2 venture, EKFB (Effiage, Kier, Ferrovial Construction and Bam Nuttall).

Buckingham was set to be the largest construction firm to collapse since Carillion, having filed a notice to appoint administrators on 16 August, citing losses on three of its stadium jobs as well as an earthworks project in Coventry.

As a result of the deal, 180 staff at Buckingham will move to Kier, equating to approximately a quarter a size of Buckingham’s workforce.

Kier Group reported in July that its year end order book continues to be above £10bn, with revenue and profit expected to be in line with expectations, with strong growth in construction in the second half of the year.

Given the modest size of the acquisition, the board has said that it does not believe that it will materially impact on the group’s forecasts for 2024, nor its year end or average net cash position.

Chief executive of Kier Group, Andrew Davies, said: "We have previously stated that we would consider value accretive acquisitions in core markets where there is potential to accelerate the medium-term value creation plan. This acquisition is one such example - it is an excellent strategic fit and accelerates our rail strategy, providing work with new rail clients and increasing our capabilities. I am delighted to welcome our new employees, clients and suppliers to Kier."

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