BCA expansion trail
BCA has bought Paragon Automotive and subsidiaries in the latest progression of BCA’s strategy of delivering broad-based support services for the handling of vehicles throughout their life-cycle.
As the leading provider of outsourced vehicle services in the UK, Paragon supplements BCA’s recent acquisitions – such as car transporter Stobart Automotive -and BCA’s current offerings in logistics, imaging, inspection and finance and will enable BCA to provide a unique full service solution across the automotive supply chain to manufacturers, dealers and leasing companies alike.
BCA buys Paragon for an initial £105 million in a deal that could bring in a further £30 million over the next two financial years, subject to achieving financial targets.
Paragon 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.
In addition, the company provides specialist services such as captive fleet handover, press demonstration and company car fleet management as well as market-leading stock locator technology tools.
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
It employs over 1,250 staff and has more than 600 acres of storage, land and refurbishment facilities available across the UK. During 2015, Paragon processed over 600,000 vehicles.
Paragon’s unaudited revenue and normalised EBITDA were £158.2 million and £11.0 million respectively for the 12 months to March 2016. The acquisition and earn-out payments will be funded from BCA’s existing resources.
BCA’s 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.”