Paragon has bolstered its customer experience division by swooping for a major chunk of Communisis’ business following the collapse of the firm – valued at more than £154m just five years ago – over the festive period.
The deal, which safeguards over 580 jobs, sees Paragon acquire the brand deployment business, which provides marketing services to some of the world’s biggest brands, and certain assets of the customer experience division, which provides inbound and outbound multi-channel customer communications services for large UK brands.
It includes the agencies Twelve and Editions and the point of purchase specialist Vox Group, a move which it is claimed expands the services that Paragon can offer to its existing clients.
The brand deployment business employs more than 300 people with a footprint in more than 20 countries. It specialises in the four key categories of permanent and temporary point of sale, digital displays, brand merchandise and print.
Paragon’s acquisition of certain assets of the customer experience business is principally for the delivery of services for Lloyds Banking Group. This will see Paragon managing over 100 million communications, to and from the bank’s customers annually.
Paragon CEO Jeremy Walters said: “I’m delighted that we’ve been able to close this deal. We’re now looking forward to releasing the potential that’s been created and to giving stability and a clear path forward to our impressive new colleagues and clients.”
The move follows the appointment of administrators from Interpath Advisory to Communisis Ltd, Communisis UK Ltd, Communisis Digital Ltd and Communisis Data Intelligence Ltd on December 28, with over 600 of its 1,200-strong workforce made redundant.
However, the company’s financial problems date back a number of years, and according to the administrators, the group had been experiencing “challenging trading conditions” for some time. These included declining print volumes due to the rise of digital technologies and increased costs of production, as well as a pension deficit.
Parent company OSG – which acquired Communisis in 2018 for around £154m – went into Chapter 11 bankruptcy protection in October. At the same time, Communisis confirmed it was in advanced talks with more than one potential buyer.
When OSG emerged from Chapter 11 two months later, it claimed it had disposed of the UK business.
Interpath Advisory managing director and joint administrator Stephen Absolom said: “First and foremost, we recognise that this will come as a devastating blow to those Communisis workers who have been impacted by redundancy.
“Our immediate priority will be to work with all affected employees to ensure that the full range of support is available to them.”
He added that administrators would also make contact with the firm’s key competitors, customers and other companies with regard to possible employment opportunities for staff.
Joint administrator James Clark said: “The transaction with Paragon enables the historically profitable brand deployment business to move forward under new ownership, as well as ensuring the continuity of service to Lloyds Banking Group.”
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