M&E contractor NG Bailey has acquired specialist engineering group ESG as it looks to strengthen its infrastructure offering and expand further into the rapidly growing water sector. The Leeds-based company said the move enhances its ability to deliver across water, environmental and broader infrastructure markets as AMP8 investment gathers pace.

The five-year programme is valued at around £100bn, roughly twice the size of the previous cycle, and is set to fuel a significant increase in upgrade and resilience projects.

Based in Sutton-in-Ashfield, ESG generates annual revenues of about £30m and employs around 180 people, taking NG Bailey’s total workforce to more than 3,600.

Established in 1989, the group is built around ECS Engineering Services and includes businesses operating across M&E, specialist steel and composite fabrication, civil engineering, and advanced water control products.

Its client base includes the Environment Agency, Severn Trent Water, Anglian Water, Welsh Water and Yorkshire Water.

ESG will continue to operate under its existing brands, with its current management team remaining in place.

Chief executive Jonathan Stockton said: “The acquisition provides a natural extension to our existing range of services and strengthens both our market positions, whilst opening up new growth opportunities for us in key areas including water infrastructure.”

He added that ESG’s strong track record, including its role in the Colwick Sluice refurbishment, would further enhance the group’s overall capabilities.