Paragon Group boosts asset finance offering with £8.5m acquisition
SOLIHULL finance company Paragon Group has boosted its asset finance offering with an £8.5m acquisition – which could cost a further £12m over the next five years if the company performs well.
Paragon has acquired 100% of the issued share capital in Premier Asset Finance Ltd. The business, based in Edinburgh, has been acquired by Paragon Bank’s asset finance division, Paragon Bank Asset Finance.
Regulatory approval for the deal has already been received and Paragon will fund the transaction from existing cash resources.
Premier is one of the UK’s leading asset finance brokerages, sourcing in excess of £100m of lending per annum to a range of SME customers. Despite its Scottish base, the business has a national presence, and was voted as Broker of the Year in Leasing World’s 2015 awards.
The initial consideration for the purchase is £8.5m, payable in cash. A further £12m is payable over the following five years, subject to performance conditions.
Commenting on the acquisition, Nigel Terrington, chief executive of Paragon said: “I am delighted to welcome the Premier team to the group’s banking division. It complements our acquisition of the Five Arrows Leasing Group last year.
“This latest acquisition reflects our ongoing commitment to delivering a more material presence in the UK asset finance market in line with the group’s diversification strategy.”
Paragon’s results for the year to September 30, 2016 will be announced on the day of the Autumn Statement, Wednesday November 23, 2016.
