Update on Caparo Industries plc and its subsidiaries – collectively the “Caparo Industries Group" or “CIP” – in administration

Published at 08:00 AM on 11 December 2015

PwC is delighted to confirm the successful conclusion of the sale of substantially all of the remaining businesses and assets of Caparo Industries Group.

This latest in a series of major transactions involves the sale of 10 businesses to the Gupta family, whose interests include the SIMEC and Liberty House groups. It follows another series of transactions between the Gupta family and administrators from PwC two weeks ago.

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."
 

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.”

 

This latest deal preserves 623 jobs across nine locations comprised of the following:

Business unit(s)

Business / Assets

Location

Staff transferring

Clydesdale Jones, Caparo Modular Systems and Caparo Advanced Composites

Business

Willenhall

142

Caparo Aluminium Bridge

Business

Wednesbury

123

Caparo Vehicle Technologies

Business

Leamington

89

CMT Engineering made up of Tube fittings, Dynamics, Clamps and Insulation

Business

Cradley Heath

40

Caparo Precision Strip – JB&S Lees

Business

West Bromwich

170

Caparo Drawn Products and Fairbright Wire

Business

West Bromwich

29

Caparo Forging – Hartlepool

Assets

Hartlepool

1

Caparo Forging – Dudley

Assets

Dudley

6

Head office

N/A

Oldbury

23

ENDS

Notes to editors:

  1. Caparo Industries plc is a Midlands & London headquartered diversified industrial group involved in the forging and pressing of metal products for aerospace, automotive and other industries; as well as the production of fastenings, wire, tubes and other products.
  2. PwC continues to trade part of the Caparo Precision Strip business, with 37 remaining employees, and continues to seek a buyer for the final remaining business for the Administrators to deal with.
  3. A team of PwC Partners & Directors Earlier were appointed administrators over the following companies within the Caparo Industries group on 19 October:

(1) Caparo Industries Plc

(2) Caparo Engineering Ltd

(3) Caparo Steel Products Ltd

(4) Caparo Vehicle Products Ltd

(5) GW 957 Ltd

(6) Bridge Aluminium Ltd

(7) Material Measurements Ltd

(8) Caparo Precision Tubes Ltd

(9) Caparo Precision Strip Ltd

(10) Caparo Vehicle Technologies Ltd

(11) Caparo Tube Components Ltd

(12) Caparo Modular Systems Ltd

(13) Caparo Advanced Composites Ltd

(14) Caparo Accles & Pollock Ltd

(15) Caparo Tube Components 2 Ltd

(16) Caparo Atlas Fastenings Ltd

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

©2015 PwC. All rights reserved


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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