Private equity firm buys majority stake in CarTrawler

Private equity firm BC Partners has agreed to buy a majority stake in Ireland-based online car rental company CarTrawler, it said yesterday.

Private equity firm ECI, which bought CarTrawler in 2011, hired PwC to run a sale process that attracted interest from a number of buyout firms.

BC Partners will acquire a majority stake in CarTrawler, while private equity firm Insight Venture Partners will take a minority stake. Management will also retain a shareholding in the company. Financial terms of the deal were not disclosed.

“We are very excited to be partnering with the management team at CarTrawler, with a view to fully maximising the company’s growth potential on a global scale,” said Matthew Tooth, senior partner at BC Partners. “For suppliers, CarTrawler facilitates access to many distribution channels that would otherwise not be available.”

Banking sources said the acquisition would be backed with debt financing of around €150m ($207m) or 5 to 5.25 times CarTrawler’s earnings before interest, taxes, depreciation and amortisation of approximately €30m.

Dublin-based CarTrawler provides online car rental distribution systems and connects customers to more than 1,200 suppliers across 30,000 pickup locations in 174 countries.

It also operates online car rental sites under the Holiday Autos and Argus Car Hire brands.

“I am delighted that we have found new partners in BC Partners, given their considerable experience in developing technology and travel related businesses,” said Mike McGearty, CEO of CarTrawler.