Fox Group acquires DSD Construction, expanding civil engineering and surfacing capability across the UK
Fox Group, the UK construction materials, construction-focused distribution and construction services group and a portfolio company of Stellex Capital Management ("Stellex"), today announced the acquisition of DSD Construction Limited ("DSD"), a leading UK civil engineering and surfacing specialist with a strong track record delivering across highways, infrastructure and regulated sectors.
Headquartered in Carlisle, DSD has built a reputation for high-quality, large-scale delivery, supporting major clients across the public and private sectors. The business combines technical expertise in surfacing, cold milling and in-situ recycling with a robust operational model capable of delivering projects nationwide.
The transaction is the fourth acquisition completed by Fox Group since investment from Stellex and is Fox Group's largest to date. DSD is a significant user of aggregates and asphalt, and the acquisition is expected to increase Fox Group's material volumes across the Group.
Terms of the transaction have not been disclosed.
DSD Construction will continue to trade under the DSD name as part of the Fox Group family of businesses, sitting alongside J. Fisher & Sons and NMS Civil Engineering. Founder and Chief Executive Shaun Nugent will remain with the business, as will Managing Director Martin Tweddle, helping to ensure continuity of leadership, culture and client relationships.
Why Fox Group is acquiring DSD Construction
? Family values, family business.
DSD was founded in 1993 by Dennis Nugent and his sons, Shaun and Darren, and remains family-owned to this day.
That ethos mirrors Fox Group's own heritage as a family-run business and provides a natural cultural fit from day one.
? Extending the services we offer our clients.
DSD brings a delivery-focused capability in surfacing, cold milling and in-situ recycling, underpinned by experienced operational teams and a strong plant and logistics platform. The business operates at scale across highways and infrastructure, delivering high-quality outcomes for Tier 1 contractors, local authorities and regulated sector clients.
? Increased material volumes for the Group.
DSD is a user of aggregates and asphalt in its surfacing and civils delivery. Bringing DSD into Fox Group supports internal demand for the Group's construction materials, with the potential to drive additional volume through our supply chain and enhance utilisation across plant and operations.
? Enhanced customer reach.
DSD's established position across highways, nuclear, rail, water and infrastructure sectors broadens the Group's client base.
Its long-term relationships and framework presence provide access to key markets, while supporting new opportunities to deliver integrated services across the Fox Group platform.
? Deeper vertical integration.
DSD strengthens the Group's vertical integration across the construction value supply chain -- from materials supply, through distribution, into on-site civil engineering, surfacing and cold milling delivery. That control of more of the chain supports improved service and greater operating efficiency and certainty for clients.
? Strengthening our circular economy model.
Fox Group already processes reclaimed asphalt planings (RAP) back into new asphalt through J. Fisher & Sons and NMS Civil Engineering.
With DSD's surfacing and cold milling activity inside the Group, more planings can be captured at source, reprocessed by Fox Group and laid back down by DSD -- a closed-loop circular model that reduces virgin aggregate use, lowers embedded carbon and supports clients on their net-zero journeys.
? A clear cross-selling opportunity across the Group.
DSD's surfacing services create cross-selling opportunities with the Group's existing client base, while DSD's customers may gain access to Fox Group's construction materials, distribution and wider construction services -- including J. Fisher & Sons (heavy haulage, road planing and asphalt reprocessing) and NMS Civil Engineering.
? National reach, with a strengthened northern footprint.
DSD's Carlisle base and nationwide delivery model add depth to Fox Group's North West heartland and extend our operational reach across the UK, particularly in the highways, nuclear, rail, public and private sectors DSD already serves.
? Specialist capability in regulated sectors.
DSD has a strong track record operating in highly regulated environments, including nuclear, rail, aviation, defence (MOD), water and power sectors, where quality, compliance and programme certainty are critical. This capability strengthens the Group's ability to deliver complex infrastructure projects and compete for larger, long-term frameworks.
? Continuity of leadership and people.
Shaun Nugent stays on as CEO and Martin Tweddle remains Managing Director.
The DSD team, brand and Carlisle operating base are all retained -- preserving the relationships, know-how and craftsmanship that have built the business over more than 30 years.
? A platform for further investment.
DSD represents a strong platform for growth within the Fox Group. With an established operational structure, experienced leadership team and clear market position, the business is well placed to potentially scale further, expand its geographic reach, increase delivery capacity and support future acquisition and integration opportunities across the sector.
Comments
"DSD Construction is exactly the kind of business we want inside Fox Group -- family-built, technically excellent and trusted by some of the UK's most demanding clients. As our fourth acquisition since the Stellex investment, and the largest to date, DSD marks an important step in the Group's growth.
It enhances our customer reach, increases our material volumes, deepens our vertical integration across construction materials, distribution and services, and strengthens our circular economy model by feeding more reclaimed asphalt planings back into new asphalt through J. Fisher & Sons and NMS Civil Engineering. Together we can offer customers a broader, more joined-up proposition."
-- Paul Fox, Chief Executive, Fox Group
"After more than 30 years building DSD with my family and our team, joining Fox Group is the right next step. We share the same values, the same commitment to our people and the same focus on looking after clients.
Together we can do more, in more places, for the customers who have backed us for decades."
-- Shaun Nugent, Founder & CEO, DSD Construction
"DSD has built a strong, delivery-focused business with a clear position in the market. Joining Fox Group gives us the platform to scale at pace, expand our reach and increase capacity, opening up new opportunities for the business."
"This is a strategic move, not just an investment. By integrating our delivery capability with Fox Group's materials and infrastructure platform, we are creating a more complete and efficient model.
That puts us in a strong position to grow, deliver larger frameworks and add greater value for our clients across the UK."
-- Martin Tweddle, Managing Director, DSD Construction
"DSD Construction is a landmark acquisition for Fox Group and a demonstration of the strategy we set out at the time of our investment.
The addition of DSD's civil engineering and surfacing capability to Fox Group's materials platform represents a meaningful step in the Group's vertical integration strategy.
We are proud to back Paul and his team as they build something genuinely distinctive."
-- Mark Redman, Managing Partner, Stellex Capital Management