UGS is a leading specialist distributor of below ground drainage and civils equipment to specialist contractors trading from 10 branches giving nationwide coverage.

For the 12 months ended 31 December it had revenues of £36.4m and reported a loss of £0.04m.

BSS Group chief executive Gavin Slark said the acquisition would enhance its capability to service the broader drainage market - above and below ground.

He added: "We see the area of drainage and water management as having significant growth potential in the coming years as infrastructure is upgraded and maintained.

"The business requires some repositioning and as a result it is expected to be earnings neutral in the year to March 2011.

"From that point onwards we anticipate UGS will be earnings enhancing".

Story provided by Business Financial Newswire