BCA acquires Paragon Automotive
BCA has acquired Paragon Automotive in a move to expand its automotive support services.
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. The acquisition and earn-out payments will be funded from BCA’s existing resources.
BCA said the acquisition is an “important further step in the progression of BCA’s 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 lifecycle”.
Paragon provides outsourced vehicle services to automotive manufacturers (OEMs) and major fleet operators, including rental, leasing and corporate fleets. For the 12 months to March 2016, Paragon’s unaudited revenue and normalised EBITDA were £158.2 million and £11 million respectively.
BCA executive chairman Avril Palmer-Baunack 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.”