Remarketing company BCA Marketplace has acquired vehicle servicing outsourcing company Paragon Automotive for an initial £105m.
The deal includes Paragon, as well as all its subsidiaries, and also includes further earn-out payments of up to £30m, subject to the achievement of financial and market targets over the next two financial years.
All payments will be funded from BCA’s existing resources.
Paragon handles, processes and stores new vehicles at their point of entry to the UK, and at the end of a factory line, as well as providing refurbishment and associated services to the used vehicle marketplace.
It also provides services such as captive fleet handovers, company car fleet management services and stock locator technology tools.
It employs 1,250 staff, and has over 60 acres of storage, land and refurbishment facilities across the UK. During 2015, the company reported processing over 600,000 vehicles from their facilities.
Paragon’s unaudited revenue and normalised earnings before interest, taxes, depreciation and amortisation were £158.2m and £11m respectively for the 12 months to March 2016.
BCA Marketplace described the acquisition as an important step in the progression of its strategy to deliver a “broad-based automotive support services business” throughout a vehicles life cycle.
Avril Palmer-Baunack, executive chairman of BCA, said: “The acquisition of Paragon gives us a key component in our transformation of BCA into the pre-eminent managed vehicle services provider to the UK and ultimately European automotive industry.