Balfour Beatty, parent of West Midlands construction firm Mansell, has announced two new acquisitions totalling nearly £18 million.
The construction group said it had bought UK ground engineering business Pennine Group for £8 million, and will buy Germany's signalling contractor SBB for around £9.7 million.
Chief executive of Balfour Beatty Ian Tyler said: "Balfour Beatty is, through Stent, already a leader in the piling sector and the acquisition of Pennine gives us a strong, complementary presence in ground engineering.
"We can now offer the full range of foundation solutions in the UK.
"The acquisition of SBB will offer us an important opportunity to broaden our signalling capability and to develop further our excellent existing relationship with Deutsche Bahn in Germany."
Lancashire-based Pennine, which is currently carrying out a bridge reconstruction contract for Wolverhampton City Council, specialises in the treatment and preparation of poor ground by the use of specialist vibration techniques.
Balfour Beatty hope to bring Pennine to new markets including the Middle East where ground conditions favour the technology.
For the year ending March 2005, Pennine saw sales of £16 million and operating profit of approximately £1.5 million.
The group employs 130 staff at its site in Bacup.
The acquisition of SBB is subject to clearance from the German Cartel Office, which is expected late August.
The firm is set to become a part of Balfour Beatty Rail Power Systems - Balfour Beatty's subsidiary.