BMW UK and fleet leasing subsidiary Alphabet have agreed a de-fleeting and stock management partnership with British Car Auctions (BCA), to last for an initial five years.

The deal, which BCA says is its the largest ever, will see BCA provide de-fleeting, refurbishment, stock management and remarketing both through the physical and digital channel. The agreement will cover 90% of de-fleeting volume from Alphabet.

BCA said it will build a dedicated de-fleet centre to handle volumes from the contract. The company’s logistics arm has also been awarded a seven-year contract to inspect and collect BMW and Alphabet vehicles.

BCA chief commercial officer, Craig Purvey said: “We are delighted to have secured this substantial and significant volume of business from one of our longest standing corporate customers.

“This significant deal with BMW Group underlines that BCA is creating the most efficient, sustainable and profitable vehicle exchange with the capacity to meet the growing needs of the motor industry.”

Last month, London Stock Exchange-traded BCA turned down a £1.6bn takeover offer from private equity firm Apax Partners. BCA said on Friday Apax had subsequently walked away from the potential acquisition.