We’re proud to have assisted in the successful sale of Paragon Laundry, the flourishing and long-standing Cheltenham business.
Hazlewoods was the sole corporate finance advisor on the sale of Paragon, advising on all aspects of the transaction from preparation to negotiation and transaction execution. Our team also designed and implemented the reorganisation that was required to deliver the transaction, drawing on our award winning tax expertise and insolvency teams, to include dealings with HMRC, pension advisors and other regulatory bodies.
Paragon formed in 1918 and moved to its Head Office in Cheltenham in 1924. Paragon has grown to be one of the largest UK independent laundry companies with its turnover, this year, at £35 million. Paragon employs more than 700 staff across its numerous sites, and almost all have remaining in the business since the sale.
Speaking of the sale, joint MD David Stevens said: “On the back of some record trading years, we had to act in the interest of all our shareholders. The sale to CLEAN is a natural progression in the growth of Paragon. We have worked alongside CLEAN for almost 10 years. Combining the two companies creates a strong and powerful player in the marketplace.”
“The team at Hazlewoods have been fantastic. Dealing with a family owned business with 30 family shareholders has its own challenges, but the team have been simply brilliant throughout. Having such expertise on our doorstep in Gloucestershire makes a real difference.”
The acquisition extends CLEAN’s market share in linen rental and doubles their workwear turnover. It also broadens their service offering. Jason Miller, CEO of CLEAN said, “The geographical synergies are excellent and this acquisition will significantly extend our UK coverage.”
The acquisition also extends CLEAN’s ownership of the Brilliant Laundry Group and makes them the single largest shareholder.
Paul Fussell, Hazlewoods Corporate Finance Partner said: “The sale represents a good result for the shareholders and for CLEAN who are well placed to realise significant operation synergies. Our involvement in the sale comprised lead advisory, restructuring and taxation services. The team also coordinated multiple advisors through due diligence to completion, working with legal advisers to guide shareholders through a multi-layered approval process.”
“We have worked with Paragon for over 10 years and have built an excellent working relationship with both the shareholders and management. We wish them all the very best for the future and look forward to seeing the combined business grow over the next few years”.
The company’s property remains with the Stevens family to support defined benefit pension scheme liabilities, which were extracted from the laundry trade by way of a pre-sale reorganisation. Paragon’s 75% subsidiary, NewGen, which provides overseas management consultancy services, was also sold.
If you would like to discuss a potential transaction and how we can help you, please contact Paul Fussell (paul.fussell@hazlewoods.co.uk) on 01242 680000.