Wates to buy most of Shepherd’s construction arm
As first reported in the Construction Enquirer both firms have been in talks over several months about a deal, but early agreement stalled over project liabilities at the construction business.
Today Wates confirmed it reached a preliminary agreement on the sale of the profit-making M&E arm, Shepherd Engineering Services, and Shepherd FM, its facilities management company.
In addition to this, Wates Group will also acquire a significant number of contracts and frameworks from Shepherd Construction, which last year ran up losses of £8.2m on £240m turnover.
Once finalised deal would create a UK leader in the construction and property services sector with a powerful engineering services capability.
Andrew Davies, chief executive of Wates Group, said: “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 combined business interests would have a broad geographic footprint, and the scale and sector strength to deliver exemplary service for clients.
Source: Construction Enquirer
Post date: 22 May 2015
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