BCA agrees terms of £1.9bn offer from TDR Capital
The board at BCA Marketplace has agreed the terms of a potential £1.9bn takeover through TDR Capital LLP – part of a consortium of investors that acquired LeasePlan three years ago.
The offer comes from BBD Bidco, a company formed on behalf of investment funds managed by TDR Capital LLP, and entitles BCA shareholders to receive £2.43 for each share, representing a 25% premium on the closing share price on 19 June 2019.
In a statement, the BCA directors said they intend to recommend unanimously that shareholders vote in favour of the deal, and added that the company has already received support from shareholders holding 44% of share capital.
BCA added: “In recommending this offer to shareholders, the board of BCA believes it is in the best interests of all stakeholders in the company. The offer from TDR gives shareholders the opportunity to receive cash at a significant premium to the prevailing share price and will allow BCA to develop its business as a private, unlisted company.”
TDR Capital LLP added: “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.”
BCA Marketplace also separately announced a rise in profits in the preliminary results for the 12 months ended 31 March 2019. Operating profit was up 14.4% to £100.2m compared to £87.6m for the previous financial year while revenues rose 24.5% from £2.4bn to £3bn.
Avril Palmer-Baunack, 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. Webuyanycar.com further demonstrated the strength of its brand, its growth potential and market leading position in UK car buying, delivering accelerated volumes in the second half of the year with growth of 23.2% (full year growth of 18.7%) whilst maintaining its five-star Trustpilot rating.”