A preliminary agreement has been reached between Shepherd Group and Wates Group on the sale of two of Shepherd Group’s Built Environment businesses, Shepherd Engineering and Shepherd FM. The agreement will also see Wates Group acquire a number of contracts and frameworks from Shepherd Construction Limited.
Once finalised, the sale will create a UK leader in the construction and property services sector with a broad geographic footprint.
Shepherd Group will continue to pursue the Group Board’s strategy of focusing future investment on the areas of the Group with significant sustainable development opportunities. In particular, further developing the UK and European expansion of Shepherd Group’s Portakabin business.
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. 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.”
Andrew Davies, chief executive of Wates Group, commented:
“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.”
The terms of the proposed deal have not been disclosed and is subject to all necessary due diligence being completed.
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