Wates has reached an agreement to buy Shepherd Group’s FM and Engineering Services arms.
The firms said the deal would create an “enhanced national contracting business with the scale to capitalise on new opportunities and pursue further growth”.
Shepherd Group said it will now focus future investment on areas of the group with “significant sustainable development opportunities”.
This will mean further expansion of its Portakabin business.
How the deal unfolded
Last month, Shepherd Group chief executive Mark Perkins warned there could be redundancies due to a review of its business. Shepherd yesterday confirmed 55 jobs had been lost.
Galliford Try last week swooped for Shepherd Group’s Yorkshire-based homes business, boosting its landbank to the tune of 515 plots.
Shepherd Group chairman David Williams said: “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.
“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 chief executive Andrew Davies 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 offsite construction, design for manufacture and assembly operations and expansion in new markets into the North of England.”
The terms of the proposed deal have not been disclosed.