Investment group Svella has agreed a deal to buy Cubby Construction saving it from possible administration.

Svella, run by former Stobart director Andrew Tinkler, confirmed it aimed to complete the deal next week protecting 214 jobs and the supply chain of the Carlisle-based contractor.

Family-owned £24m turnover Cubby ran into problems working on Galliford Try’s Carlisle Southern Link Road project which it exited late last year.

To help steer the business forward in the wake of the challenging project, Cubby directors turned to private investor Svella which provided funding support earlier this year, taking a charge over certain assets.

Now Svella, which owns several other construction related businesses, plans to fully acquire the business and roll it into a wider construction-focused group.

Tinkler is promising a £12m investment plan to grow Cubby into new sectors including energy, rail and infrastructure, while also eyeing bolt-on acquisitions to accelerate expansion.

A spokesman for Svella said: “Svella Plc is pleased to confirm that, following agreement by all parties, it is targeting completion of the solvent acquisition of Cubby Construction Limited by the end of June.

“This development represents a highly positive outcome for customers, employees and suppliers alike.

“The acquisition will ensure continuity of operations for Cubby Construction and provide the investment necessary to support the long-term growth and success of the business.”