Paladin Group bought Phoenix Electrical for a seven-figure sum in addition to completing the simultaneous takeover of several letting agencies in North Buckinghamshire.

The acquisitions were backed with £1.5 million provided by private equity firm NVM, with additional funding supplied by HSBC. NVM originally invested in the group two years ago when it agreed to finance its acquisition of Castle Estates.

This latest acquisition strengthens Paladin’s electrical testing services subsidiary Calbarrie as well as expanding the group’s geographical reach.

Paladin chief executive Tim Saunders said he is pleased NVM has continued to support his expansion plans despite the credit crunch. “This reflects the strong performance of the business following its acquisition of Castle in 2006.”

Paladin operates through four subsidiaries: Touchstone, a property management services business; Castle Estates, a high street letting agency; Calbarrie, a health and safety testing specialist; and Maintenance UK, a property maintenance provider.