BCA Marketplace buys Paragon Automotive

19th Jul 2016 12:36

(ShareCast News) - BCA Marketplace has acquired UK automotive services group Paragon Automotive Limited for £105m in cash, to be funded from its existing resources.The company said it will pay further earn-out payments of up to £30m, subject to the achievement of financial and market targets over the two financial years 2016/7 and 2017/8.Paragon, which provides outsourced vehicle services to automotive manufacturers and major fleet operators, has over 1,250 staff and processed more than 600,000 vehicles in 2015.For the 12 months to March 2016, Paragon's unaudited revenue and normalised earnings before interest, tax, depreciation and amortisation were £158.2m and £11m, respectively.BCA's chief executive 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."At 1243 BST, shares were up 0.2% to 168.25p.