Caparo deal saves 527 Black Country jobs

Administrators PricewaterhouseCoopers this morning confirmed they and all the assets had been sold 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.

Among the businesses sold is Clydesdale Jones, Caparo Modular Systems and Caparo Advanced Composites, Willenhall, where 142 jobs have been saved.

At Caparo Precision Strip – JB&S Lees, West Bromwich,170 workers have been kept in employment and at Caparo Aluminium Bridge, Wednesbury, 123 posts have been preserved.

Also sold is CMT Engineering, Cradley Heath, which is made up of tube fittings, dynamics, clamps and insulation businessess where 40 have been saved.

At Caparo Drawn Products and Fairbright Wire, West Bromwich, 29 have kept their jobs and at Caparo Forging – Dudley, six. Also 23 jobs at the group headquarters in Oldbury have been saved.

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 saving more than 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 other businesses to be sold are Caparo Vehicle Technologies, Leamington Spa, where 89 jobs have been kept and Caparo Forging, Hartlepool, where just one job was preserved.