Kier has struck a deal with the administrators of Buckingham Group Contracting to buy all its rail assets.

The £9.6m cash deal also includes the rail division’s HS2 contract to supply Kier’s joint venture on the project, EKFB.

Around 180 staff from Buckingham will now transfer over to become part of the Kier Transportation business, which designs, builds and maintains infrastructure for the highways, rail, aviation and ports sectors.

Andrew Davies, chief executive, 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.”

Given the business’ modest size, Davies said the acquisition would not materially impact the Kier’s forecasts for FY24, nor its year-end or average net cash position.