BCA has bought Paragon Automotive for £105 million which, depending on performance, could rise to £135m.
The acquisition further bolsters its strategy of delivering a broad-based automotive support services business that is able to provide a one-stop-shop for the handling of vehicles throughout their life-cycle.
Paragon is a leading operator in the provision of outsourced vehicle services to automotive manufacturers (OEMs) and major fleet operators, including rental, leasing and corporate fleets.
It handles processes and stores new vehicles at their point of entry to the UK and at the end of the factory line, as well as providing refurbishment and associated services to the used vehicle marketplace.
In addition, Paragon provides specialist services such as captive fleet handover, press demonstration and company car fleet management as well as market-leading stock locator technology tools.
It employs more than 1,250 staff and has available more than 600 acres of storage, land and refurbishment facilities across the UK. During 2015, Paragon processed over 600,000 vehicles from their facilities.
The company supplements BCA's recent acquisitions and BCA's current offerings in logistics, imaging, inspection and finance and will enable BCA to provide a unique full service solution across the automotive supply chain to OEMs, dealers and leasing companies alike.
Paragon has been acquired for an initial enterprise value of £105m, with further earn-out payments of up to a maximum of £30m, subject to the achievement of financial and market targets over the two financial years 2016/7 and 2017/8.
Paragon's unaudited revenue and normalised EBITDA were £158.2m and £11m respectively for the 12 months to March 2016. The acquisition and earn-out payments will be funded from BCA's existing resources.
Avril Palmer-Baunack, executive chairman of BCA, said: "The acquisition of Paragon gives us a key component in our transformation of BCA to the pre-eminent managed vehicle services provider to the UK and ultimately European automotive industry.
"Following this transaction BCA will manage over 1.5 million cars a year in the UK and the company sees significant potential to grow this new division organically as well as delivering operating synergies."
More articles on:
Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
Login to comment
Comments
No comments have been made yet.