Sovereign Capital in £15 million funding of Paragon Group Limited

Sovereign Capital, the UK private equity buy & build specialist, is pleased to announce the acquisition of Paragon Education and Skills Limited ("Paragon"), a leading provider of government-funded training in the South and Southwest of England, and the ongoing funding of Paragon's growth and development using its distinctive buy & build approach.

Founded in 1998, Bournemouth based Paragon has grown to become one of the region's largest training providers across a range of sectors including automotive, marine, engineering, care, financial services and business administration. 

Paragon has built strong relationships with the Learning and Skills Council to deliver the two main streams of government-funded, work-based learning training - Apprenticeships and Train to Gain.  Paragon's employer base includes SME's, leading regional employers and multinational businesses such as Siemens. The business has a particular record with world-leading marine businesses including Sunseeker and the Royal National Lifeboat Institution. 

Sovereign's deep sector knowledge and successful buy & build experience with training and education investments including Alpha Plus, SENAD and ESG enabled it to identify Paragon as an ideal fit with Sovereign's investment strategy.  Sovereign have known the business for a considerable period and worked with the management and vendors on the transaction on an exclusive basis.

The Paragon management team, led by Chief Executive Gavin Freed, has been enhanced as part of the deal by the appointment of Adam Carswell as Group Finance Director.  Adrian Humphries, the vendor, will remain on the Board as a Non Executive Director.

In addition to operating from nine sites in Somerset, Dorset, Devon and Hampshire, Paragon also delivers training at employer premises across Sussex, Berkshire, Avon and Surrey. Paragon employs over 190 staff, including over 120 training professionals.

Commenting on the transaction, Simon Hitchcock, Director, Sovereign Capital said: "The government-funded training sector is one Sovereign knows well through our successful development of ESG.  We are delighted to expand our training services portfolio with the addition of Paragon.  Paragon has built a very strong reputation in the Southwest and is an ideal platform to apply Sovereign's proven buy & build strategy to expand the business nationally."

Gavin Freed, Chief Executive, Paragon added: "Paragon has grown to deliver opportunities to 2000 current learners and nearly 700 employers across the region.  With the Government's ambition for apprenticeships to become a mainstream education option we look forward to playing a central role in growing the UK's skills base along with a strong and experienced funding partner."

Adrian Humphries, vendor of Paragon commented: "Having developed the business over the past decade I am delighted to hand over to Gavin and Sovereign whose experience in the sector will greatly benefit Paragon as it looks to the next stage in its development."