AWL will join the Cappagh Group of Companies raising combined turnover to more than £100m within a national operation.
Founded in 1984, AWL has grown to become a market leader in horizontal directional drilling, rock drilling and guided auger boring.
It operates from offices in West Sussex, South Yorkshire and Essex.
Martin Watson, co-founder and managing director of Allen Watson along with co-owner Peter Hodgson and all other existing staff will move over as the business continues to trade under its own, recognisable, brand.
Michael Ferncombe, group managing director of Cappagh, said: “Acquiring Allen Watson offers an exciting opportunity for Cappagh to strengthen and expand its service offering into technical trenchless contracting which is complementary to our existing skill-set.
“With its existing prestigious clients and compatible geographical coverage, the acquisition of Allen Watson supports our strategy to lead the market and meet clients’ requirements for a single service provider to manage complex construction projects from start to finish.”
The Cappagh Group operates through its companies: Cappagh Contractors, Cappagh Public Works, Express Concrete and DC Rail.