19th Jul 2016 08:05
LONDON (Alliance News) - BCA Marketplace PLC on Tuesday said it has bought UK automotive services group Paragon Automotive Ltd for an initial GBP105 million in cash.
BCA, which operates the British Car Auctions brand, will pay further earn-out payments of up to GBP30 million, subject to the achievement of financial and market targets over the next two financial years.
Paragon provides outsourced vehicle services to automotive manufacturers and major fleet operators, including rental, leasing and corporate fleets. It employs over 1,250 staff and has available over 600 acres of storage, land and refurbishment facilities across the UK. During 2015, it processed over 600,000 vehicles from its facilities.
In the financial year to March, Paragon made revenue of GBP158.2 million and earnings before interest, tax, depreciation and amortisation of GBP11.0 million.
BCA will fund the acquisition from its existing resources.
"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," Executive Chairman Avril Palmer-Baunack said in a statement.
"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," Palmer-Baunack added.
Shares in BCA were trading up 1.6% at 170.75 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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