The Wates Group has secured a preliminary agreement for the purchase of two of Shepherd Group’s built environment businesses, as well as a significant number of contracts and frameworks from Shepherd Construction.
Once the sale of both Shepherd Engineering Services and Shepherd FM are concluded, Wates Group says the deal will create a UK leader in the construction and property services sector with a distinct and outstanding engineering services capability. In a statement released on May 21, the company says the combined business interests would have a broad geographic footprint, and the scale and strength to deliver exemplary service for clients.
Andrew Davies, chief executive of Wates Group, said: “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 acquisition of Shepherd Construction’s capability, Shepherd Engineering Services and Shepherd FM would complement and enhance our existing construction and property services 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. These additions to the Wates Group would complement and enhance our current expertise in the marketplace and allow us to move into new markets and realise our growth plans.”
Following the sale, Shepherd Group would continue to pursue the Group Board’s strategy of focusing future investment on the areas of the Group with significant sustainable development opportunities.
David Williams, chairman of Shepherd Group, said: “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.”
The transaction is subject to all necessary due diligence being completed, with the terms of the proposed deal yet to be disclosed.
