Caparo sale secures 600 more jobs

Caparo sale secures 600 more jobs

The sale of the last Caparo Industries Group businesses to the Gupta family brings the total jobs saved from the manufacturing sites to 1,111.

Matthew Hammond, Midlands region chairman for PwC and Caparo lead administrator, said: "We are delighted to have completed the sales, it is great news for the Midlands and the key manufacturing sites, particularly with so many skilled staff in these industries being given security at this time of year.

"This has been a complex and challenging assignment given the size and number of the business operations. Only by working alongside the talented Caparo people have we been able to achieve this result.

"Throughout what has been a difficult time, PwC has remained committed to achieving the goals of the administration: to keep the business going and find the best solution for staff and creditors.

"In particular the supply chain can also now look forward to 2016 with a good deal more certainty with these businesses in the hands of an experienced investor across these sectors. We thank the customers and suppliers who have supported the businesses over the last eight weeks."

The latest transaction involves the sale of 10 businesses to the Gupta family, whose interests include the Simec and Liberty House groups.

This follows another series of transactions between the Gupta family and administrators from PwC two weeks ago.

In just under two months, the PwC team have completed deals preserving over 1,100 jobs across the country, but heavily concentrated in the West Midlands.

Robert Moran, partner at PwC leading the Caparo sales process, said: "We are delighted to announce this latest transaction. Alongside those previously announced, it represents a successful outcome and continuity for a number of businesses which enjoy market leading positions.

"Our process to sell the Caparo businesses extended to over 350 interested parties, and we are delighted to transfer the businesses, assets and staff through to a new investor with significant experience and plans to invest further in the steel, engineering and vehicles sectors.

"To have preserved another 623 jobs across nine locations by means of this transaction is a success which repays the talent, skills and dedication shown across the businesses over recent weeks.

"The transactions to date have led to a total of 1,111 Caparo people being transferred and remaining in continued employment. We are delighted for the Caparo employees, who have shown incredible loyalty to the business, and fantastic support to the PwC team in working with us over a difficult eight week period to secure transactions which have preserved many longstanding Midlands businesses.

"We would like to thank them all, as well as their union representatives, for this support."

The announcement preserves jobs at sites including West Bromwich, Hartlepool, Wednesbury and Oldbury.

Liberty House Group managing director, Sanjeev Gupta, said the latest acquisitions represented a major opportunity to preserve and develop what he described as "the cream of British engineering expertise".

"These businesses contain some world-leading knowledge and skill that has the potential to contribute to a significant engineering revival in the UK.

"Despite current difficulties, advanced engineering can create enormous value for the UK economy and I'm convinced that, based on the right business model, operations like these have strong growth potential in the UK and across various markets internationally where Liberty is present," he said.

The announcement is a welcome piece of good news following the loss of thousands of jobs in the steel industry in recent weeks.