Clayton, Dubilier & Rice Sells BCA in £1.2 Billion Transaction
NEW YORK and LONDON, March 26, 2015 /PRNewswire/ -- Clayton, Dubilier & Rice today announced the sale of BCA, Europe's largest used vehicle marketplace, to Haversham Holdings, the publicly listed investment vehicle, in a transaction valued at approximately £1.2 billion. Shareholders of BCA, which include CD&R funds, will receive £701 million in cash and £104 million in stock. The transaction is expected to close in early April.
Under CD&R ownership, BCA diversified its business by adding a vehicle buying unit through the acquisition of WeBuyAnyCar.com, expanding in continental Europe and Brazil, and launching a range of new value-added service offerings. In addition, it has invested meaningfully in its technology and digital platforms to better serve its customers and adapt to the changing behaviour of the market. The result was an increase in EBITDA of approximately 85% under CD&R's ownership.
CD&R Partner David A. Novak said, "We have been delighted with our investment in BCA. The operating improvements and growth initiatives implemented with management under our ownership have transformed BCA from a traditional used vehicle physical auction business into a multi-channel marketplace. They have provided BCA with a strong foundation for continued growth and a rewarding future. We are confident that the talented group of managers at the company, under the leadership of Avril Palmer-Baunack and the Haversham team, will continue to drive strong performance in the future."
HSBC Bank plc, J.P. Morgan Limited, Rothschild and UBS Limited acted as financial advisors and Clifford Chance LLP and Debevoise & Plimpton LLP acted as legal advisors to CD&R in connection with the transaction. Ernst & Young LLP acted as accounting advisor.
About Clayton, Dubilier & Rice
Founded in 1978, Clayton, Dubilier & Rice is a private equity firm with an investment strategy predicated on producing financial returns through building stronger, more profitable businesses. Since inception, CD&R has managed the investment of $21 billion in 63 businesses with an aggregate transaction value of approximately $100 billion. To learn more about CD&R, please visit www.cdr-inc.com.
About BCA
BCA is Europe's leading used vehicle marketplace. Operating in 13 countries, BCA remarketed approximately 1 million vehicles and bought more than 140,000 cars in 2014. To learn more about BCA, please visit www.bca-group.com.
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