Rok yesterday acquired West Midlands social housing specialist Kingfisher Building Company for £4.5 million.
Kingfisher was recognised as a leading provider of planned maintenance services to local authorities and housing associations in the region, Rok said.
It will pay £1.1 million in shares and £3.4 million in cash for Kingfisher of which £1 million is deferred pending the achievement of results for the 2006 year end.
Funding for the cash element of the transaction will be from existing facilities.
The two Kingfisher shareholders are Peter Davies, a former Bovis executive, and his wife Valerie.
In the year ended December 31 Kingfisher reported pretax profits of £0.9 million. Founded in 1994, Birmingham-based Kingfisher employs more than 50 people.
It installs 55 kitchens and 25 bathrooms a week.
Rok said the quality of service and effectiveness of Kingfisher's operations were "highly regarded locally" and would complement the development of its planned maintenance businesses across the UK.
It would also broaden and strengthen Rok's presence in Birmingham and Stafford where it already has offices providing response maintenance predominantly to the customers of leading insurance companies.
Stuart Gray, from Bentley Jennison, advised Kingfisher. Natalie Gennard, of Waldrons, advised Mr and Mrs Davies.