The board of remarketing giant BCA Marketplace has accepted a cash offer for the business worth £1.9 billion from TDR Capital.
The offer of £2.43 per share is more than 21% higher than a previous bid for the company from Apax Partners, which was rejected.
BCA said that in recommending the offer to shareholders, the board believes it is in the “best interests of all stakeholders in the company”; the offer represents a 30% premium to the closing price of the company’s shares last week.
In a statement, TDR Capital said: “BCA is a high-quality business that operates in a market that is changing rapidly, driven by evolving customer demands and digital disruption.
“TDR has a strong track record of investing in businesses and partnering with management to develop and grow their operations.
“We are highly supportive of BCA management and believe that with the right investment and support, BCA can continue to grow and evolve its market-leading automotive aftermarket services offering for the benefit of its customers, employees and partners."
In BCA’s most recent annual results, operating profits were £100.3 million on group revenue of £3 billion.
The business sold more than one million vehicles on behalf of its customers last year, including manufacturers, global leasing companies and major dealer groups.
Its BCA Partner Finance arm provided dealer funding of nearly £1 billion to support customer vehicle purchases last year.
It is also developing the in-life services arm of the business, with the planned launch of cinch, which will provide dealers with leads for vehicle sales and offer consumers a vehicle search service that includes suggestions based on their lifestyles.
Avril Palmer-Baunack, BCA Marketplace executive chairman, said: “BCA has delivered a good resilient performance in the year against the backdrop of a challenging new car market, subdued conditions in the more stable used car market and economic uncertainty created by Brexit.”
TDR Capital is part of LP Group BV, a consortium which in 2016 bought LeasePlan, one of the world’s largest leasing companies.
The consortium includes leading Dutch pension fund service provider PGGM, Denmark’s largest pension fund ATP, GIC, Luxinva SA, and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
