Second-hand vehicle trader British Car Auctions (BCA) has been sold to the owner of the Hertz car rental chain, it was disclosed today.
US private equity firm Clayton, Dubilier & Rice has agreed to buy BCA from fellow buyout group Montagu Private Equity in a deal said to value the business at £390m (€433m).
BCA sells more than £4bn (€4.4bn) of used vehicles each year, with 45 centres spread across 12 countries.
It sold to more than 70,000 buyers in the UK alone this year, offering vehicles at auction on behalf of a wide range of sellers including dealers, leasing companies, manufacturers and rental companies.
Hertz already uses BCA to dispose of its used rental cars when it upgrades its fleet.
Jon Olsen will remain chief executive of BCA, with Clayton, Dubilier & Rice (CD&R) partner Fred Kindle appointed as chairman. The management team will retain an equity stake in the company.
David Wasserman, a partner at CD&R, said: “Our work with Hertz and other similar services companies makes us very comfortable with the business model and value proposition of BCA.
“We look forward to supporting the company as it pursues a number of exciting long-term growth opportunities, including expansion into new countries, the introduction of new services and strategic acquisitions.”
BCA started life in 1964 as Southern Counties Car Auctions, launching as one of the first companies to let people across the UK buy and sell a wide range of cars at auction.
It is headquartered in Farnham, Surrey in England.