Wates Group has closed the deal to buy Shepherd Engineering Services (SES) and Shepherd FM. The acquisition includes a number of contracts and strategic frameworks from Shepherd Construction.
The move means 1,200 Shepherd staff will join Wates and the expanded company’s turnover is expected to increase by around £300M. It will also allow Wates to move into markets in the North and North West.
Wates Group chief executive Andrew Davies (pictured) said: “Today’s acquisition marks another step towards Wates becoming the UK’s leader in the construction and property services sector, now boasting a distinct and outstanding engineering capability, offsite manufacturing proficiency and technical expertise in specialised construction projects.
“Our investment is expected to deliver an additional circa £300M in turnover in the first year of trading, projecting us further towards our £2bn target and making great strides in the fulfilment of our long-term growth strategy.
“The deal is underpinned by a collective commitment to strong values of integrity, performance and respect from both organisations; shared principles that are built on a long-standing family heritage.
“We are now preparing to welcome more than 1,200 new colleagues to the business and our immediate priority is to ensure the engagement and alignment of our people, whilst remaining focussed on maintaining our reputation for excellent customer service.”
Talks on the deal started late last year and the intention to buy was announced in May. It is parts of the Wates strategy to double turnover to £2bn, which included the acquisition of Walsall-based Purchase Group last November. The company says it currently has a forward order book of £3bn - up 50 per cent on last year.
Shepherd Group will retain the reputable Shepherd Construction name and focus on the remaining parts of the business, including the Portakabin Group.