Mortgages  

Paragon hits acquisition trail

Paragon hits acquisition trail

Paragon Bank, part of Paragon Mortgages’ parent company Paragon Group, has agreed to buy Five Arrows Leasing Group Limited, an SME asset finance lending business.

The acquisition is part of Paragon Bank’s strategy to enter into the UK SME asset finance market. The Group will acquire the total share capital of £117m and the transaction is expected to complete by 3 November 2015.

John Heron, managing director of Paragon Mortgages, said: “This is fantastic news for Paragon Bank and in turn, the wider Group.

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“The new business has a strong track record and good reputation in operating in specialist markets, which of course is a good fit with Paragon. In addition, the loan book has an excellent credit profile and provides us with a platform to grow in a new market.

“It is expected that the acquisition will also accelerate Paragon Bank’s business plan, allowing the Bank to achieve profit in 2016 and further enhance its contribution to the Group’s ongoing success.”

Five Arrows Leasing Group Limited is owned by Five Arrows Leasing Holdings Limited, part of Rothschild & Co.

Adviser view

Ying Tan, director of Surrey-based Buy to Let Business, said: “We work with the mortgage brokage side more than the specialist/asset finance side of Paragon Group but it is great to see it diversify and add more services for their advisers.

“The launch of enhanced criteria for its Paragon Premier product recently is also a positive step forward for intermediaries.”