Lord Swraj Paul-led Caparo Group today announced acquisition of leading US-based heavy haul trailer manufacturer XL Specialized Trailers, marking the industrial conglomerate's entry into a new business arena.
Based in Manchester, Iowa, XL is a leading manufacturer of customised heavy-haul trailers for the commercial, construction and agricultural markets.
After the acquisition, XL will become a wholly-owned subsidiary of Bull Moose Industries, the North American manufacturing group owned by Caparo group. The financial details of the deal were not disclosed.
Paul, Founder and Chairman of Caparo group, said he was dedicating the new plant to his late son Angad who had planned its acquisition.
"Angad had planned this purchase but he is not with us today. We dedicate this to him," Paul said.
Caparo, founded in 1968 by the NRI industrialist, is a fast-growing UK-based group with a turnover of 1 billion euro. With business interests spanning across manufacturing of steel, automotive and general engineering products, it has grown into a global entity and has over 40 companies operating from over 60 sites worldwide.
It has 30 plants in India. In the US, Caparo already has tube making plants at 7 locations, besides one steel fabrication plant and one steel warehousing and stockholding facility. It is also working on a property development and hotel project in the US which would be ready in February 2017.
XL Specialized Trailers in Iowa would be its latest in the US.
Bull Moose Tube Company said that XL will continue operations as normal under its current management at Manchester plant. Bull Moose has emerged as a leading manufacturer of tube steel, and XL acquisition furthers its goal to expand into other industrial manufacturing markets.
Founded in 1995, XL has grown into the second largest player in the customised heavy-haul trailer market.
"We are confident that the purchase of XL Specialized Trailers provides both of our companies with a solid opportunity for growth," Bull Moose CEO Michael Blatz said.
Along with the acquisition, Bull Moose also announced creation of a new business unit, named Bull Moose Mobility. The other existing units are Bull Moose Tube and Bull Moose Engineering.
