Wates to buy Shepard construction arm
Wates is to buy Shepard construction arm in a deal which will see Wates purchase its built environment arm the deal which has been ongoing for over a year is reported to be going through after lengthy negotiations.
Wates confirmed it has reached a preliminary agreement on the sale of the M&E arm of , Shepherd Engineering Services, and Shepherd FM, which is its facilities management company this part of the Shepard group made losses of £8.2m on £240m turnover
Wates Group will also acquire a significant number of existing contracts and frameworks from Shepherd Construction the deal would create a UK leader in the construction and property services enviroment.
Andrew Davies, chief executive of Wates Group, commented : “The acquisition of Shepherd Construction’s capability, Shepherd Engineering Services and Shepherd FM would complement and enhance our existing businesses, with access to additional areas of expertise in off-site construction, design for manufacture and assembly operations and expansion in new markets into the North of England.
“The deal would form part of Wates Group’s long-term growth strategy to develop its construction and property services businesses nationwide and build on the success of the company’s recent acquisition strategy.”
The business combined interests would have a broad geographic footprint, and the scale and sector strength to deliver exemplary service for clients.
Following the sale, Shepherd Group will focus on developing the UK and European expansion of its successful Portakabin business.
David Williams, Chairman of Shepherd Group commented: “As a company with 125 years heritage, Shepherd Group has a strong history of adapting to market opportunities as they evolve.
“This deal would support our long-term growth strategy, providing exciting opportunities for the businesses retained in Shepherd Group as well as those involved in the proposed sale.
“The Shepherd Group Board recognises that Shepherd Construction needs scale in order to capitalise on its full potential and the market opportunities arising out of its acknowledged technical capability. Our aim is to ensure the best possible future opportunity for all our businesses – and that includes Shepherd Construction, Shepherd Engineering Services and Shepherd FM.
“This transaction would also enable Shepherd Group to focus future investment on significant sustainable development opportunities such as the continued expansion of our Portakabin business.”