Sale of vehicle and fleet subsidiary
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PARAGON BANKING GROUP PLC
Sale of vehicle and fleet subsidiary
Paragon Banking Group PLC ("Paragon") announces that it has agreed to sell the entire issued share capital of its subsidiary, Specialist Fleet Services Limited ("SFS"), to NRG Fleet Services Limited ("NRG") for £85.6 million, including the settlement of SFS' intra-group debt (the "Transaction"). The sale is expected to complete in July 2026.
At 31 March 2026, the net assets of SFS stood at £10.1 million and the balance of intra-group funding stood at £33.2 million. The gain from the Transaction, net of an allocation of goodwill paid on the acquisition of SFS, will be reflected in the full-year accounts, adding around £40 million to Paragon's tangible net assets and 0.5% to our CET1 ratio.
Paragon acquired SFS through its acquisition of Five Arrows Leasing Group Limited in October 2015. It is a specialist business within Paragon's Commercial Lending division, focusing on municipal vehicle support and leasing to local authorities as well as private waste operators. The business is supported by a substantial operating infrastructure of people and workshops.
100 employees, based in Northampton and various workshops across the UK, will transfer to SFS under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) on, and conditional upon, completion of the Transaction.
Commenting on the sale, Paragon's chief executive, Nigel Terrington CBE, said: "NRG is one of the UK's premier specialist fleet management companies and we believe being part of NRG will support SFS in reaching its true potential. At the same time it will simplify Paragon's operational platforms and the additional capital created will be used to continue supporting growth in our Commercial Lending division. We thank managing director, Bob Sweetland, and his team at SFS for their contribution over the last eleven years and we wish them continued success for the future."
For further information, please contact:
Paragon Banking Group PLC Headland
Richard Woodman, Chief Financial Officer Charlie Twigg
Deborah Bateman, External Relations Director Paragon@headlandconsultancy.com
Tel: 0121 712 2505 Tel: 020 3805 4822
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