Reviewed: 30th November 2015
A core aspect of Caparo Industries, the steel product-making group that recently entered partial administration, has been sold to new owners with hundreds of jobs being saved in the process.
Caparo Tubular Solutions, which has a factory in South Wales and is headquartered in the West Midlands, has been bought by Liberty, a business owned by the Gupta family, whose interests include various energy, metals and trading operations worldwide.
After concluding negotiations to acquire the business with its administrators from PwC, representatives of Liberty suggested that the operation will complement its existing hot rolled coil production capabilities.
“There are many natural synergies between our hot rolled coil production business and Caparo’s design, manufacture and distribution of steel tube and various specialist engineering products,” said Sanjeev Gupta, Liberty chief executive.
“They are established customers for our product and we have, in fact, looked at them in the past about the possibility of integrating the two businesses in order to help create a comprehensive and robust new model for the steel sector in the UK. We now aim to achieve that objective.”
Mr Gupta went on to say that he remains optimistic about the prospects for the British steel industry, despite some of its largest players having entered administration and, in some cases, been liquidated in recent weeks.
“I believe that, despite the current difficulties being encountered by the UK steel industry there is a future for the sector in Britain, if we can develop more efficient business models based on streamlined integrated production, processing and distribution,” he said.
Expectations are that more than 300 employees of Caparo Tubular Solutions will be retained by its new owners, with Liberty’s chief executive citing the company’s “highly-skilled management and workforce” as a key part of its appeal as an acquisition target.
All but three of the 19 businesses owned until recently by Caparo Industries were entered into administration in October with efforts having since been made to find new owners for those operations.
In recent days, it was announced that a total of 79 jobs in the West Midlands and southern England would be saved after Caparo Testing Technologies was successfully sold out of administration. Our extensive office network comprises 76 offices across the UK with a partner-led service offering immediate director advice and support.