Paragon Print & Packaging Group Secures Debt from Investec

Following the acquisition of Paragon Print & Packaging Group earlier this year by an affiliate of Sun European Partners, Investec Growth & Acquisition Finance has provided a 110 million pounds ($167.4 million) integrated debt facility incorporating a blend of revolving and amortising term facilities to refinance the senior secured acquisition debt. Established in 1994, Paragon is comprised of four divisions supplying printed labels, sleeves, cartons, lined board, film and artwork.

PRESS RELEASE

Following the acquisition of Paragon Print & Packaging Group (“Paragon”) earlier this year by an affiliate of Sun European Partners LLP (“Sun”), Investec Growth & Acquisition Finance (“Investec”) has provided a £110 million integrated debt facility incorporating a blend of revolving and amortising term facilities to refinance the senior secured acquisition debt.

Established in 1994, Paragon is comprised of four divisions supplying printed labels, sleeves, cartons, lined board, film and artwork. The group operates from ten UK manufacturing facilities totalling in excess of 650,000 sq ft, employs approximately 1,200 staff and has a turnover exceeding £170 million. The group services around 1,800 customers, including some of the UK’s leading food manufacturers and end-market retailers, such as Tesco, Sainsbury’s, Asda, M&S, Morrisons, Co-op, Waitrose and Iceland.

James Cullen, Investec commented: “We are delighted to have supported Sun on this transaction, having also funded the Britton transaction two years ago. In Paragon, they have acquired a market-leading business with a best-in-class management team led by Mark Lapping and Karl Bostock. The depth of expertise and market presence of the Sun packaging portfolio together with the Paragon business forms a powerful and winning combination.”

David Culpan, Head of Debt Capital Markets at Sun commented: “We’re very pleased to have partnered again with Investec. From the outset Investec demonstrated a good understanding of the business and at an early stage delivered a clear view on the structure they were prepared to provide. They delivered in line with these terms and in doing so provided an innovative funding package, as promised, on time. We see Investec’s integrated debt offering as a real differentiator to mainstream senior debt.”

The Investec team consisted of Gary Edwards, James Cullen, Tristan Nagler and Ben Mills.
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For further information please contact:
Investec Specialist Bank
James Cullen 020 7597 4787
Tristan Nagler 020 7597 5178

Newgate Communications
Jason Nisse/Andrew Jones 020 7680 6550

NOTES TO EDITORS:

Investec Growth & Acquisition Finance
Investec Growth & Acquisition Finance is part of Investec Specialist Bank. It works with entrepreneurs, management teams and private equity houses to provide finance to UK mid-market companies. Their flexible solutions cover the entire capital structure offering revolving and amortising senior cash flow lending, mezzanine finance and minority equity on either a standalone or integrated basis. They are a single, empowered and responsive team focussed on making deals happen and building strong relationships with clients.

Investec Specialist Bank
Investec is a specialist bank that provides a diverse range of financial products and services to a niche client base in three principal markets: the United Kingdom, South Africa and Australia, as well as certain other countries.

This press release is issued on behalf of Investec Bank plc. Registered address: 2 Gresham Street, London, EC2V 7QP. (Reg No. 489604). Investec Specialist Bank is a brand name of Investec Bank plc, which is a member of the London Stock Exchange.