Private equity firm TDR Capital and BCA Marketplace have agreed to a £1.9bn valuation of the car remarketing company and an offer of 243 pence per share.
The BCA directors have agreed unanimously to the valuation and the decision to accept the acquisition was accepted by shareholders holding over 44% of shares, with the directors holding the rest to get the deal over the line.
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As reported in the FT and on Motor Finance earlier this week, the offer represented a 25% premium on last Wednesday’s close.
The deal is being brokered by Jefferies Banking Group, which said the deal was one of the largest to go from public to private hands in recent years.
Following the news of the potential takeover last Thursday, shares for BCA shot up from 195p per share to 237p for share.
Last year, BCA saw its share price rise sharply following a £1.6bn bid from Apax Partners to acquire the company, which BCA subsequently turned down stating that the bid undervalued the company. The private equity investor subsequently dropped its offer.
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By GlobalDataThe bid from TDR Capital comes after a third consecutive year of strong financial results posted by BCA – with 2018 operating profits up 17.9% year-on-year to £87.6m. The company also sold over a million vehicles for the first time last year.
The business enjoyed growth in all divisions, with group revenues up from £2,029m in 2017 to £2,431m in 2018.
In December last year, BCA signed a two-year exclusive remarketing deal with TC Harrison Ford, in a deal that enabled around 3,500 vehicles a year to be sold in weekly sales in Derby and Peterborough. TC Harrison vehicles are offered with a BCA Assured report, and the majority of vehicles have the V5 and service history present and are provided with a warranted mileage.
BCA operates vehicle defleeting, auctioning and remarketing, as well as providing stock finance and software for dealers. It also owns retail trade-in portals We Buy Any Car in the UK and CarTrade2B in Germany.
The company floated on the London Stock Exchange in 2015. Its top shareholders are Invesco Asset Management, with 22.5% of shares; Woodford Investment Management, with 16%; and American financial services firm Capital Group, with 10.6%.
