Shepherd completes deal

Shepherd Group has sold a large chunk of its non-core operations to ​Wates Group​ in a deal that will enable Wates to expand in the North and allow Shepherd to focus on its core Portakabin business.

Shepherd, one of Yorkshire’s biggest family-owned businesses, described the deal as a ​“​win-win​“ for both sides.

It is understood that all 1,250 staff employed at the businesses will transfer to Wates.

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​Wates has bought two of Shepherd Group’s built environment businesses, Shepherd Engineering Services and Shepherd FM, the facilities management company.

In addition Wates has also acquired a significant number of contracts and frameworks from Shepherd Construction.

Surrey-based Wates said the deal will add £300m to its turnover.

York-based ​​​Shepherd ​said the proceeds will enable it to ​​invest in its successful Portakabin business and continue its expansion in the UK and Europe.

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It also gives it an exit from the low margin, high-risk construction sector.

Wates​ said the deal w​ill​ create a UK leader in the construction and property services sector.

Shepherd Group’s chairman David Williams said: “The deal supports Shepherd Group’s long-term growth strategy of focusing future investment on the areas of the group with significant sustainable development opportunities.

“As Shepherd Group celebrates its 125th anniversary, we can reflect on its rich heritage of innovation, dedication and the delivery of quality products and services and at the same time look forward with optimism to the Group’s continued growth and development.”

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Shepherd Group was advised by Paul Trickett, Matthew Nicholson and Maninder Minhasin Deloitte’s Corporate Finance team in Leeds.

Tim Wheldon, James Tatro and Luke Aylett of Addleshaw Goddard LLP provided legal advice.

Paul Trickett, partner at Deloitte in Leeds, said: “We are delighted to have advised Shepherd, one of the most high profile family owned businesses in the region, on such a transformational transaction. “We believe that the Wates Group will be an excellent home for the businesses acquired and wish them every success in the future.”

Tim Wheldon, partner at Addleshaw Goddard, added: “This was a super deal to be so closely involved in, a great client to work with and an impressive team effort all round. It is also a great example of the quality and complexity of work which is undertaken in the Yorkshire professional community.”

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