Irish cleaning and security services group Resource has acquired Pall Mall, a subsidiary of UK-quoted Carillion, for £22 million (€31.6 million) in cash.

The deal creates Ireland's largest support services group, with 15,000 staff and €215 million in annual revenues.

Resource chief executive Terence Brannigan said the purchase was "transformational" for the firm and would give it a strong base in Britain.

Pall Mall was established in 1915 and employs 7,500 staff at five locations in England, Scotland and Wales. It had turnover last year of £75 million.

Resource's business will now be split almost 50/50 between Ireland and Britain, but Mr Brannigan was keen to stress that it would remain an Irish company.

London-listed Carillion acquired Pall Mall as part of its purchase of Mowlem in 2006.

Carillion chief executive John McDonough said the business was not core to his company because Carillion was no longer focusing on the "single-commodity services of cleaning and security", which is provided by Pall Mall.

Resource styles itself as a soft services company which provides a range of outsourced services, including cleaning, hygiene, reception, security and car parking management.

Mr Brannigan said Resource has had significant organic growth but would not rule out further acquisitions in related areas.

The deal is the latest in a series of large acquisitions by Resource, all of which have been backed by Lioncourt Capital, the investment vehicle for financiers David Andrews and Michael Tunney.

In November 2006, Resource acquired the Limerick-based cleaning company, Corporate Cleaning Services. In March this year, it purchased Masterclean, which has headquarters in Santry, Dublin. Resource was formed in March 2006 following a management buy-in of Northern Ireland's Maybin Support Services, led by Mr Brannigan and backed by Lioncourt. The Pall Mall purchase was funded by Anglo Irish Bank and Resource received advice from Clearwater Corporate Finance, Grant Thornton and Marsh.