London: Lord Swraj Paul's Caparo group today (Nov 14, 2004) announced acquisition of five European steel companies with a combined annual sales turnover of approximately 135 million pounds (Rs 1090 crore) for an undisclosed sum.

The acquisitions, which will increase the group's turnover by 25 per cent, include Britain's leading manufacturer and distributor of precision steel tubing and assemblies, Tyco Tube, which employs over 800 people and which has sales of approximately 83 million pounds last year. It has eight factories in West Midland region.

Another new addition to the steel empire founded by the Labour peer in 1968 is Tyco Strip, a leading international supplier of specialised cold-rolled steel strips which are sold in more than 40 countries worldwide. The company had sales of approximately 36 million pounds last year and employs 400 people.

Caparo did not disclose the cost of the acquisitions as it is a privately held group controlled by the Paul family. The Group's steel manufacturing factories are located in UK, USA, Canada, Spain and India, where it has set up several plants in the last two years.

The other company whose takeover by the Caparo PLC, the principal operating Division of Caparo group chaired by Lord Paul, was announced is Caparo's competitor in industrial fasteners GKS-Centrepiece having sales of five million pounds which, like Caparo, supplies products to automotive industry.

Caparo already owns Britain's largest fasteners manufacturer, Armstrong.

Two more companies-- Sytems Scaffolding Ltd, with a turnover of eight million pounds and LIPE, based in Barcelona, Spain, with a turnover of two million pounds-- have been acquired by the Caparo Group.

Commenting on the acquisitions, Lord Paul said, "These businesses complement our existing activities in the steel conversion sector and will enable Caparo to continue to play a key role in the UK steel industry. I am delighted to welcome these businesses and their employees into the Caparo Group."

"By consolidating GKS and Armstrong Fastening Technologies, Caparo is able to ensure Armstong's position as a major fastener manufacturer supplying into the UK and Europe," he said.

"The consolidation enables Armstrong to vastly improve its sales and cost base and as a result, will move the business forward to become a force to be reckoned with," Lord Paul said.