Schreck-Mieves makes key rail components and systems and supplies specialist plant and equipment.

"Balfour Beatty is already a major player in the German rail market with a leading position in electrification and power supply as well as significant capabilities in planning, logistics and signalling," said Balfour chief Ian Tyler.

The business, which also has operations in Holland and Russia, had 2007 sales of €118m, operating profits of €3.3m and net assets of €17m.