The company says it hopes to increase the Newcastle firm’s £4m turnover and add to its 50-strong workforce.

Graydon Dawson, which specialises in trench laying and has major contracts with a number of utility companies including Northumbrian Water, will remain at its site in Blaydon as part of the deal.

The purchase brings Owen Pugh’s turnover to £20m and its workforce up to 240. The firm says it is looking for further acquisitions.