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Shepherd sells M&E and FM firms to Wates

Wates Group has made a preliminary deal to buy Shepherd Engineering Services and Shepherd Facilities Management, alongside a number of contracts and frameworks from Shepherd Construction.

There are 120 staff spread across the three divisions in the North West, based in the Shepherd Group offices in Altrincham.

In a joint statement, Shepherd Group and Wates Group said that "when concluded the deal would create a UK leader in the construction and property services sector with a distinct, outstanding engineering services capability. The combined business interests would have a broad geographic footprint, and the scale and sector strength to deliver exemplary service for clients."

Following the sale, Shepherd Group said it will focus investment on the areas of the group with sustainable development opportunities. In particular, the sale will enable Shepherd Group to develop the UK and European expansion of its Portakabin business.

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

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."

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."

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