No figure has been announced yet, but a statement from Wates Group asserts that the contractor would also acquire a “significant number” of contracts from Shepherd’s construction business.
Wates has stated that the deal would “create a UK leader in the construction and property services sector”.
Andrew Davies, chief executive of Wates Group, said: “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.”
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.”
Earlier this year, Shepherd FM secured an extension to its maintenance contract with Twickenham Stadium, operated by RFU.
It also extended its M&E maintenance deal with Standard Chartered, a banking and financial services company headquartered in London, and secured work with Simmons & Simmons, an international law firm, also headquartered in London.
In 2011, Wates acquired Linbrook Services, a repairs, maintenance and refurbishment company.
See more at: http://www.fm-world.co.uk/