Shepherd Group and Wates Group have reached a preliminary agreement on the sale of two of Shepherd Group’s built environment businesses to Wates Group for an undisclosed sum.
The two parts of the businesses are Shepherd Engineering Services and Shepherd FM, its facilities management company. The agreement also involves acquisition of a significant number of contracts and frameworks from Shepherd Construction Limited.
Shepherd Group chairman David Williams said that the deal would support its long-term growth strategy.
He said: “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.”
Wates Group chief executive Andrew Davies added that the deal is part of its long-term growth strategy to develop its construction and property services businesses nationwide.
He said: “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.”
The deal is subject to all necessary due diligence being completed.