Motor services group revs up with £135m deal
A USED car selling platform is set to majorly expand its services following a £135m deal to acquire Paragon Automotive.
The Bedford-based group, which has centres in Grimsby, Immingham and Derby has been acquired by listed used vehicle platform BCA Marketplace.
BCA intends to bolt-on the business to extend its support services throughout a vehicle’s life cycle.
Paragon employs 1,250 staff across a dozen UK centres, providing outsourced vehicle services to automotive manufacturers and fleet operators.
The deal, for an initial £105m, will be increased with earn-out payments of up to £30m.
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.”
Paragon’s unaudited revenue was £158.2m for the 12 months to March 2016.
