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Infrastructure group Balfour Beatty has acquired segments of Rok's affordable housing and general construction division for £7m, of which £4m has been paid in cash. Balfour Beatty says it hopes the move will boost the presence of its Mansell brand in the South Midlands.

In a statement to the Stock Exchange today, Balfour Beatty added that a balance of £3m will be paid as contracts transfer. It says the new operations will add £100m to the group's revenue.

The company also claims 381 jobs will be saved as they will be integrated into its regional construction business Mansell.

It said: "Rok's operations in affordable housing, which are principally in the South West and North West of the UK, will support Mansell's strategy of being a leading provider in affordable housing where long-term demographics are favourable.

"Rok's general construction activities will enhance Mansell's existing capabilities at Heathrow and Gatwick airports as well as expanding its geographical presence into the South Midlands.

"We are working with Rok's administrator towards an efficient transition of these operations to minimise disruption to clients and to protect jobs in the operations we are acquiring."

Balfour Beatty chief executive Ian Tyler said: "The strategic fit between the operations of Rok and Mansell, reinforced by the quality of the Rok management team and staff, presents a big opportunity for us to develop our UK regional business on attractive terms to our shareholders."

Rok entered administration last week following a wretched year. Its difficulties are seen as having arisen from its dependency on public sector-funded projects, which account for more than half of its business.

Rok had announced 2,600 redundancies. Many job losses have been at its maintenance divisions across the UK and in the construction business in Scotland, according to administrator PwC.

Earlier this year, Rok said it had uncovered "serious failings" in financial and operational controls relating to its plumbing division.