Barclays bolts on to Paragon

Barclays Private Equity has funded two add-on acquisitions for Paragon, a UK printing and labelling business it acquired in late 2001.

Paragon, the UK-based printing and labelling business, has made two further bolt-on acquisitions in a deal backed by Barclays Private Equity.

 

Paragon, which supplies self-adhesive labels for fresh and chilled food products, has acquired two UK companies, EPL Technologies and Norfolk Labels.

 

Financial details have not been disclosed. Barclays Private Equity invested from its £1.25bn 2002 European Fund, whilst Barclays Leveraged Finance provided senior debt funding.

 

The transactions increase Paragon’s turnover to £60m (E86m) from £46m and extends its workforce by 140 to 500.

 

EPL produces printed flexible packaging films supplying the cooked meat industries. Norfolk Labels manufactures cardboard sleeves for chilled and ready meals.

 

Paragon was established in 1994 and prints labels for a significant number of products seen in the fresh and chilled food areas of major supermarket groups. Barclays Private Equity backed a management buyout at the company in November 2001 in a deal valued at £7.5m (E11m).

 

In April, UK newspaper The Times listed Paragon as one of the UK’s 100 fastest growing companies, increasing its profits by an average of 39 per cent a year between 1998 and 2001.

 

Andrew Murtagh, director of Barclays Private Equity who led the original deal, described Paragon as a high performing business in a highly competitive sector and one that “has made significant advances.”