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BCA Marketplace buys Paragon Automotive

BCA Marketplace has acquired the UK automotive services group Paragon Automotive and its subsidiary companies.

Paragon is a major operator in the provision of outsourced vehicle services to carmakers and leasing companies, including new vehicle storage, PDI and de-fleet refurbishment. Its clients currently include Vauxhall, Volkswagen, Toyota, Kia and Volvo.

BCA said the Paragon acquisition is an important further step in the progression of its strategy of delivering a broad-based automotive support services business that is able to provide a one-stop-shop for the handling of vehicles throughout their lifecycle.

As a major provider of outsourced vehicle services in the UK, Paragon supplements BCA's recent acquisitions 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 OEMs, dealers and leasing companies alike.

Paragon has been acquired for an initial enterprise value of £105 million, with further earn-out payments of up to a maximum of £30 million, subject to the achievement of financial and market targets over the two financial years 2016/7 and 2017/8.

Paragon's unaudited revenue and normalised EBITDA were £158.2 million and £11 million respectively for the 12 months to March 2016.

The acquisition and earn-out payments will be funded from BCA's existing resources.

BCA 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."

Paragon employs over 1,250 staff and has available over 600 acres of storage, land and refurbishment facilities across the UK. 

During 2015, Paragon processed over 600,000 vehicles from its facilities.

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