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ISG has taken its turnover close to the 拢1bn mark with the acquisition of Pearce Group, a regional contractor in the South-west.

ISG paid 拢12.75m for the 85-year-old business, with a further deferred consideration of 拢9m to be added over the next two years depending on performance. The Bristol firm has a turnover of almost 拢160m.

The purchase of Pearce, which has a large specialist retail business, further strengthens ISG鈥檚 presence in the sector following its acquisition of Cathedral, another retail specialist, in April.

Pearce has two divisions: an 拢88m-turnover food retailing division with clients including Tesco, Marks & Spencer, Sainsbury鈥檚 and Asda; and a 拢70m construction business in the West Country and south Wales.

The construction business expands ISG鈥檚 regional coverage from the South, East and North. It will also add to its affordable, social and student housing capability.

Colin Forrest, chief executive of Pearce, will join the ISG group managing directors鈥� operational board.

In the year to 30 April, Pearce, which employs 350 staff, posted a pre-tax profit of 拢2m on a turnover of 拢158m. Secured work in September for the year to 30 April stood at 拢147m.

David Lawther, head of ISG, revealed he was now looking towards Asia to expand. He said: 鈥淲e鈥檝e got a template now that gives us a good geographic coverage in the UK. We will continue to monitor opportunities but our focus in terms of acquisitions is Asia.鈥�

Lawther has spent about 拢60m expanding ISG鈥檚 operations beyond its traditional base in London over the past two years.

Earlier this year the group acquired consultancy Commtech Asia, building on its presence in the market with ISG Asia.