2nd Oct 2015 06:38
LONDON (Alliance News) - Buy-to-let mortgage lender The Paragon Group of Companies PLC on Friday said its Paragon Bank PLC business has struck a GBP117.0 million deal to acquire Five Arrows Leasing Group Ltd from Rothschild & Co, the boutique investment bank.
Five Arrows provides equipment, vehicle and construction equipment financing and provides lease servicing. At the end of March, it had assets of GBP245.1 million on its books and for the year to that date, the company made a pretax profit of GBP10.2 million.
Paragon expects the deal to complete by November and expects the deal to be earnings enhancing in its 2016 financial year. It added the acquisition will take its Paragon Bank business from break-even to profitability.
"I am delighted that we have acquired Five Arrows Leasing, a business we have admired for many years as a market leader in the asset finance sector. The acquisition provides the opportunity to continue pursuing our strategy of diversifying the group's income streams, building strong and sustainable earnings growth and enhancing our return on equity," said Paragon Chief Executive Nigel Terrington.
By Sam Unsted; [email protected]; @SamUAtAlliance
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