Acquisition of Shepherd Engineering Services (SES) and Shepherd FM by Wates

Wates Group has reached an agreement to acquire Shepherd Engineering Services (SES) and Shepherd FM, together with a significant number of contracts and strategic frameworks from Shepherd Construction Limited.

The acquisition of these divisions of York-based Shepherd Group's Built Environment business will enhance Wates' existing construction and property services offering, unlocking expertise in technical and specialised construction operations and providing a nationwide facilities management portfolio. The deal will also see Wates strengthen its geographic footprint by expanding into new markets in the North and North West.

Forming part of Wates Group's strategic growth plans to double turnover to £2bn, the agreement builds on the success of the Group's acquisition of Walsall-based Purchase Group in November 2014. This investment saw Wates end the year with a bolstered northern housing maintenance division to complement its southern offering, following the 2011 acquisition of Enfield-based Linbrook.

Wates Group is already accelerating towards its ambitious turnover target, with a focus on existing core markets propelling work-in-hand to its highest in five years and a forward order book of £3bn - up 50 per cent on last year.

Shepherd Group will now strategically focus on the remaining parts of the business, including the successful Portakabin Group, and will retain the reputable Shepherd Construction name.

Andrew Davies, Chief Executive of Wates Group, commented: "Today's acquisition marks another step towards Wates becoming the UK's leader in the construction and property services sector, now boasting a distinct and outstanding engineering capability, offsite manufacturing proficiency and technical expertise in specialised construction projects.

"Our investment is expected to deliver an additional circa £300 million in turnover in the first year of trading, projecting us further towards our £2bn target and making great strides in the fulfilment of our long-term growth strategy.

"We are now preparing to welcome more than 1,200 new colleagues to the business and our immediate priority is to ensure the engagement and alignment of our people, whilst remaining focussed on maintaining our reputation for excellent customer service."

Today's announcement follows the agreement of Heads of Terms in May, with the two businesses commencing sale discussions in December 2014.

Visit www.wates.co.uk for more information.