Paragon Bank has completed its acquisition of Five Arrows Leasing Group for £117 million.
Five Arrows Leasing offers a range of asset finance products, through its subsidiary brands, to UK SMEs, including equipment, vehicle and construction equipment finance and is also a provider of lease servicing.
At its last audited balance sheet, Five Arrows Leasing had assets of £245.1 million financed by £42.9 million of shareholders’ funds and a £178.0 million loan from Rothschild & Co.
In the year to 31 March 2015, Five Arrows Leasing made a pre-tax profit of £10.2 million and profits after tax of £8.1 million. From 2010 to 2015, Five Arrows Leasing achieved a 17.6% compound annual growth rate in receivables balances.
Five Arrows Leasing’s loan book currently stands at around £240 million financed by a £193 million loan from Rothschild & Co.
Paragon said that Five Arrows Leasing will form the basis for further SME finance development within Paragon Bank and it will be re-branded in the near future to reflect its change in ownership.
