Boston, Lincolnshire-based Magnadata, which included subsidiary Norprint, was placed into administration last Thursday (30 July) and restructuring partners at Mazars were appointed as administrators. The acquisition was finalised on Monday (3 August).
A spokesperson for Paragon Group told PrintWeek: “Paragon has acquired all the trade and assets of Magnadata International, and the relevant employees remain with the business. The equipment line-up is unchanged and production will continue as before.”
Magnadata will now form part of the BemroseBooth Paragon subsidiary of Paragon Group.
In a statement, administrators Mazars said: “Norprint was a trading entity of Magnadata Group. Magndata Group went into administration on 30 July and Mazars was appointed administrator.
“The directors of Magnadata Group had taken the difficult decision to make 90 redundancies at Norprint prior to the administrator being appointed. Following the appointment, over 90 jobs were saved at Magnadata International, the group’s other trading entity, when the business was sold to Paragon Group.
“Magnadata Group went into administration after encountering financial difficulties due to the loss of customer contracts and the inability to reduce its overhead base in line with the reduced income.”
Paragon Group told PrintWeek it did not acquire any part of Norprint or its trade.
Magnadata specialises in the development and manufacture of security and access control media including magnetic, smart tickets and tags.
Paragon Group said the acquisition will secure its position as the leading magnetic and RFID provider globally within the mass transit sector.
It also said it will reinforce its commitment to expanding its Access Control and Traceability Solutions Division and increase the division’s revenues to in excess of €75m (£53m).
Paragon Access Control and Traceability Solutions Division general manager Dominique Durant said: “We see many advantages with this acquisition. For our customers, this market consolidation ensures stability of supply and for the group it improves our ability to service our existing and prospective client base with innovative products and technologies.
“This acquisition positions Paragon as the global market leader in smart access control solutions.”
Former chief executive officer of Magnadata Group Roy Colclough added: “While I am saddened that we could not continue to operate under the previous structure, I am pleased that we have been able to save over 90 jobs and find an owner for Magnadata that has the same ambition and drive, along with the commercial stability, to achieve our vision.”
Robert Adamson, restructuring partner at Mazars, said: "We are delighted to complete the sale of Magnadata to BemroseBooth Paragon and secure jobs. We wish them every success as they look to rebuild Magnadata.”
Paragon Group has been growing rapidly with a series of acquisitions that have more than doubled its revenues in the last two years to over €400m. Its staff number now stands at more than 3,500 worldwide.
The group’s Access Control and Traceability Division now includes Paragon Identification in France and Romania, BemroseBooth and Magnadata in the UK. The division has 400 employees overall.
