Wates eyes Shepherd takeover

Grant Prior 10 years ago
Share

Wates is believed to be weighing-up a possible takeover of rival Shepherd’s contracting businesses.

The Enquirer understands that preliminary talks have been held about Wates acquiring Shepherd Construction, Shepherd Engineering Services and Shepherd FM.

Sources close to the talks said discussions between the two privately-owned firms have been on-going since the start of the year.

The move follows a string of senior departures at Shepherd as the construction division was restructured in the wake of disappointing results.

The latest raft of bosses left in January following the initial restructure in September overseen by chief executive Mark Perkins.

The Enquirer understands that Shepherd Engineering Services managing director Peter Lewis suddenly left the company last month “to pursue other opportunities”.

A company source described Lewis as “an inspirational leader” and “the person ultimately responsible for building SES into the success it is today.”

The source added: “Morale here is at an all time low with everyone left in the dark.

“We just want to know what is going on here at Shepherd.”

Wates declined to comment while Shepherd said “as a matter of company policy we never comment on rumours or speculation”

How they shape up

Wates Group Shepherd Group
Turnover £931m £686m
Profit £22m £11m
Staff 2,074 3,235
Established 1897 1890

 

According to Enquirer sources the profitable Portakabin business would stay with the family-owned Shepherd group along with several other operating firms.

The main prize for Wates is the contracting businesses which have experienced mixed trading recently.

Latest accounts for Shepherd Construction reveal it ran up an £8.2m loss last year on turnover down a third to £240m. Shepherd Engineering Services did better making a £5.3m profit from turnover up 8% at £208m.

These two main Shepherd contracting arms employed nearly 1,400 staff.

Despite both operating nationally the construction business provide a good geographical fit with Shepherd strong in the north from its historical base in York and Wates established in the south from Leatherhead in Surrey.

Wates has also long held ambitions to develop its strength in building services to provide a more vertically integrated offering to clients.

 

Latest news

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
4 hours ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
19 hours ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
19 hours ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
19 hours ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
19 hours ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
20 hours ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
1 day ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
2 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
2 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
2 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
3 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
2 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
2 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
2 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
3 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
3 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
3 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
4 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
4 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
3 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
4 days ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
4 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
4 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
4 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
4 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
4 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
4 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
4 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
7 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
7 days ago