Sanjeev Gupta’s industrial conglomerate Liberty House is considering selling a major automotive supplier to Jaguar Land Rover (JLR) and Renault.
The company has hired advisers from Grant Thornton to look into how to address market issues facing Liberty Pressing Solutions (LPS).
One of the options on the table, a source close to Liberty House confirmed, is a sale. Others include acquisitions and joint venture opportunities.
The move was first reported by Sky News.
LPS is based in Coventry and used to be called Covpress. It supplies pressings and welded parts for JLR, Renault, and Caterpillar, which makes industrial machinery.
City A.M. understands LPS has struggled in recent years because of a stagnating automotive market, which has been driven in part by Brexit uncertainty.
Already this year, Honda has announced the closure of its mammoth factory in Swindon, Ford has planned to close its engine making plant in Bridgend and Nissan has cast doubt over the future of its operation in Sunderland.
A spokesman for Liberty House said: “Liberty has engaged advisers to undertake a strategic review for Liberty Pressing Solutions.
“Options under consideration include the possibility of strategic partnerships, joint ventures, new business development and acquisitions as well as potential investors for the business.
“It is well documented that the automotive market and its supply chain in the UK is challenging and needs consolidation.
“We’re committed to securing a successful future for the business, and for the people who work in it.”