PARAGON Bank PLC division Paragon Bank Asset Finance has added to its business with the acquisition of a leading UK asset finance brokerage as Paragon acquires Premier Asset Finance.
Premier sources more than £100 million lending a year to a range of SME customers and Paragon sees this as a growth area.
Based in Edinburgh, Premier has a national presence, and won a Broker of the Year award in 2015. The move comes less than a year after Paragon acquired vehicle finance specialist Five Arrows Leasing Group which was rebranded Paragon Bank.
Working together, Paragon Bank Asset Finance and Premier will focus on expanding their asset finance business across a range of asset classes including wheeled assets, plant and machinery and IT.
The base purchase price is £8.5 million, payable in cash. A further £12 million is payable over the following five years, subject to performance. The deal, being paid from Paragon Group’s existing cash resources, has been given regulatory approval.
Paragon Bank managing director Richard Doe said: “I’m delighted to welcome the Premier team to Paragon Bank’s asset finance division. Premier is one of the UK’s leading SME asset finance brokerages and, working together, we have a unique opportunity to expand our asset finance business by forging new and exciting relationships with SME customers.”
Kevin Davidson and Mark Ripley, joint managing directors of Premier, stated: “Paragon has a first class reputation, a strong balance sheet and an impressive track record of delivering profitable growth.
“Paragon shares our ambitious growth plans and is an excellent cultural fit for Premier. We are very excited to be joining Paragon Bank’s asset finance division and look forward to this new chapter in our development.”