BCA acquires Paragon
BCA has acquired Paragon Automotive acquired for an initial £105 million in a deal that could bring in a further £30 million over the next two financial years, subject to financial performance.
The move is the latest development in BCA’s strategy of providing a broad-based automotive support services business for the handling of vehicles throughout their life-cycle.
Paragon provides 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 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.
The business employs over 1,250 staff and has more than 600 acres of storage, land and refurbishment facilities across the UK. During 2015, Paragon processed more than 600,000 vehicles.
Executive chairman of BCA, 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.’
The Paragon acquisition supplements BCA’s recent ventures in logistics, imaging, inspection and finance, enabling the business to provide supply chain services to manufacturers, dealers and leasing companies alike.