Howes Percival in driving seat for £105m sale
Law firm Howes Percival has acted for the exiting shareholders of Bedfordshire automotive fleet inspection, refurbishment, storage and logistics group Paragon Automotive in its £105 million sale to British Car Auctions.
The sale price could rise a further £30 million if the group hits certain trading targets over the next two years.
Paragon has gone from an empty site and no cars 11 years ago to fashion a £150m turnover business with healthy annual profits.
The deal was handled by the corporate team members of Howes Percival’s automotive sector group who have been advising clients in the automotive sector for more than 50 years.
Lead partner Gerald Couldrake said: “We have acted for Paragon since we set the company up for our clients in 2005. It has been an incredible journey.
“When it started, Paragon had no customers, just a large site at Thurleigh in Bedfordshire that needed filling up with an awful lot of cars. Over the last 11 years, and four acquisitions later, Paragon has become a very profitable business turning over in excess of £150 million and making more than £11million of profit annually.
“We were set an extremely ambitious target for completion – three weeks from signing heads of agreement. The time we spent in constructing the key commercial and key legal terms of the deal during the negotiation of those terms was crucial to achieving that target. For a deal of this size, the teamwork we were able to bring in to help manage the process was a critical factor.
“We are delighted to have enabled the shareholders to achieve a superb exit from the business, whilst securing the future for the business within the British Car Auctions group.”