Paragon snaps up Lettershop Group in new growth drive

Paragon Customer Communications has swooped for The Lettershop Group, the print and direct mail specialist which was founded in 1886, in the third strategic acquisition this year alone, as the group continues its ambitious expansion strategy.

Leeds-based Lettershop and its 142 employees will now become part of Paragon Customer Communications UK, Ireland and Luxembourg. It had been owned by the beleaguered YM Group (previously York Mailing) since 2013.

In the financial year to 31 May 31 2020, Lettershop Group had sales of £19.7m and an operating profit of £214,645, however, the terms of the acquisition have not been disclosed.

Lettershop Group had historically focused on direct mailing for the financial services industry but over the years has expanded into the retail sector and now offers a wide range of marketing services including data analytics, marketing strategy and digital media for the likes of Marks & Spencer, Sky and Tesco.

The deal forms part of Paragon’s ongoing growth strategy, designed to augment what the company claims is its “strong organic growth performance and its capabilities, talent and market share with strategic acquisitions”.

Paragon, which has a turnover of €1.5bn and more than 9,000 employees, insists Lettershop Group’s Leeds site and staff will enhance its current offering.

The acquisition will also extend Paragon’s direct mail and packaging portfolios and broaden the range of solutions it can offer clients, it maintains, adding that Lettershop Group offers “great potential for future growth” due to its strong client base and dedicated staff.

The deal follows April’s acquisition of Williams Lea CCM, the customer communications division of Williams Lea Tag Group, and February’s purchase of digital transformation agency Reason, a retail and financial services specialist which has worked for Waitrose, Gap and T-Mobile.

Over the past few years, Paragon has also acquired DST Customer Communications, Howard Hunt businesses Celerity Information Services, ORM and Graft Services, and London creative agency acquisition Tod UK (formerly Tangent on Demand).

Paragon Group executive director of corporate development John Rogers said: “Paragon is committed to its acquisition-led growth strategy. Incorporating The Lettershop Group will provide us with the opportunity to continue our growth trajectory and offer increasingly innovative solutions to our customers in a market that remains fragmented.”

Paragon Customer Communications UK, Ireland and Luxembourg chief executive Jeremy Walters added: “We are delighted to welcome The Lettershop Group and our new colleagues to Paragon.

“Its industry knowledge, expertise and dedication to its customers will help to strengthen our position within an evolving market, and we are thrilled to begin working with its 142 committed staff members.”