Paragon acquires Five Arrows Leasing Group

Paragon Group has acquired Five Arrows Leasing Group through its subsidiary Paragon Bank for £117m.

The deal, announced Friday, is part of the bank’s strategy to provide diversification of funding sources and income streams for the group which started in 2014.

In the year to 31 March 2015, Five Arrows Leasing made a pre-tax profit of £10.2m and profits after tax of £8.1m and had assets of £245.1m financed by £42.9m of shareholders' funds and a £178.0m loan from its owner Rothschild & Co.

Paragon Group chief executive Nigel Terrington said they’ve been admiring the business for years as a market leader in the asset finance sector.

“The acquisition provides the opportunity to continue pursuing our strategy of diversifying the Group's income streams, building strong and sustainable earnings growth and enhancing our return on equity.

"The Five Arrows Leasing culture, philosophy and operating model is an excellent fit with the group and we look forward to working with their management team and to supporting growth opportunities across the SME markets."

The sale is expected to be completed by 3 November.