The deal for £3.1m will release cash to expand the business and see the contractor move to new offices at Liverpool Station in London at the end of the year.

Mark Lawrence, chief executive of T. Clarke, said the deal would allow staff and operations from both T.Clarke London and DGR, the specialist mechanical services and public health contractor, to be consolidated into one building.

He said: “The co-location of these two businesses will bring the benefits of greater integration and allow us to build upon the group’s objective of offering our clients a broader range of services.”

DGR was acquired by Clarke last year and is currently based in Brentwood, Essex.