Shepherd sells two divisions to construction giant

CONSTRUCTION firm Wates has agreed to buy two of Shepherd Group’s divisions.

Shepherd’s Engineering and Facilities Management divisions, as well as a “significant” number of contracts and frameworks will be acquired for an undisclosed sum.

The Shepherd Group has come under scrutiny recently. Earlier this week it was announced that 55 jobs would be lost at the York firm, and earlier this month it offloaded its homes division to Linden, a subsidiary of behemoth Galliford Try.

David Williams, chairman of Shepherd Group 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.”

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.

“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 transaction is subject to all necessary due diligence being completed. The terms of the proposed deal have not been disclosed.