Reports have confirmed that British Car Auctions, the second-hand vehicle trader has been purchased by the owner of the major car retail chain, Hertz.
Clayton, Dubilier & Rice, the American private equity company has agreed to purchase BCA from Montagu Private Equity, and the deal has reportedly valued the business at 390 Million Pounds.
Every year, BCA sells over 4 Billion Pounds worth of used vehicles, and currently boasts 45 centers across 12 countries. During the present year alone, the company has sold to over 70,000 UK buyers.
Hertz already makes the most of BCA to dispose off its used rental vehicles whenever it upgrades its collection.
Under the terms, the management team will continue to retain an equity stake in the firm, and Jon Olsen will continue to act as the Chief Executive of BCA, and Clayton, Dubilier & Rice partner Fred Kindle will be heading the firm as the Chairman.
"Our work with Hertz and other similar services companies makes us very comfortable with the business model and value proposition of BCA", said David Wasserman, a partner at CD&R.
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