12:21 pm, July 19, 2016
BCA has acquired Paragon Automotive Limited and its subsidiary companies.
BCA says the deal is an important step in the progression of 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 UK operator in the provision of outsourced vehicle services to automotive manufacturers (OEMs) and major fleet operators, including rental, leasing and corporate fleets.
The firm 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.
Paragon employs over 1,250 staff and has more than 600 acres of storage, land and refurbishment facilities across the UK. During 2015, Paragon processed over 600,000 vehicles.
Paragon has been acquired for an initial 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.
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.’
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