Wates to buy most of Shepherd’s construction arm

Aaron Morby 10 years ago
Share

Wates has finally struck a deal with Shepherd Group to buy the bulk of its built environment division.

As first reported in the 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.

How they shape up

Wates Group Shepherd Group
Turnover £931m £686m
Profit £22m £11m
Staff 2,074 3,235
Established 1897 1890

 

  • Shepherd Construction and Wates Group have complementary geographical footprints. The combined assets would create an enhanced national contracting business with the scale to capitalise on new opportunities and pursue further growth
  • Shepherd Engineering Services is a market leader in the design and installation of building services solutions, with strong technical prowess and offsite fabrication capabilities
  • Shepherd FM is a national facilities management business that would enhance Wates Group’s position in the property services sector, adding to the broad range of services it already provides.

Following the sale, Shepherd Group will focus on developing the UK and European expansion of its successful 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.”

Latest news

Over £600m awarded for decarbonisation projects – full lists

Over 240 public building energy upgrade projects secure cash
5 hours ago

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
15 hours ago

Enabling works to start on £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
15 hours ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
15 hours ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
14 hours ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
15 hours ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
15 hours ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
14 hours ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
1 day ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
2 days ago

House builder Camstead goes into administration

Work stopped on three current sites
2 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
2 days ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
2 days ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
2 days ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
2 days ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
3 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
3 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
3 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
3 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
3 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
3 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
4 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
4 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
4 days ago

Management buyout at M&E specialist

£25m turnover Kimpton in second MBO in its 60-year history
4 days ago

BAM finalises £71m deal to replace first major RAAC school

Work to start on new St Leonards Catholic School in Durham
4 days ago

Scaffolder hit by two tonne weight at nuclear plant

Court hands out £633,000 in fines after Dungeness B decommissioning incident
4 days ago

Go-ahead for 860,000 sq ft East London medical campus

Whitechapel Road scheme of six new and repurposed buildings
4 days ago

Site labour rates hit record high as cost inflation returns

Industry's biggest payroll firm says rates rose nearly 5% last month in London
7 days ago

Morris & Spottiswood acquires part of ISG fit-out division

ISG Cathedral acquisition saves 111 jobs and expands presence across England
1 week ago

Contractor services