Private equity firm TDR Capital is in “advanced talks” to acquire BCA Marketplace, valuing the vehicle auction house at £1.9bn.

The Financial Times reported that the board of BCA plans to unanimously recommend shareholders to accept the 243p per share offer, which represents a 25% premium on Wednesday’s close.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Following the news of the potential takeover on Thursday, shares for BCA shot up from 195p per share to 237p for share. At the time of writing, shares for the company sit at 232p per share.

Last year, BCA saw its share price rise sharply following a £1.6bn bid from Apax Partners to acquire the company, which BCA subsequently turned down stating that the bid undervalued the company. The private equity investor subsequently dropped its offer.

The bid from TDR Capital comes after third consecutive year of strong financial results posted by BCA – with 2018 operating profits up 17.9% year-on-year to £87.6m. The company also sold over a million vehicles for the first time last year.

The business enjoyed growth in all divisions, with group revenues up from £2,029m in 2017 to £2,431m in 2018.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In December last year, BCA signed a two-year exclusive remarketing deal with TC Harrison Ford, in a deal that enabled around 3,500 vehicles a year to be sold in weekly sales in Derby and Peterborough. TC Harrison vehicles are offered with a BCA Assured report, and the majority of vehicles have the V5 and service history present and are provided with a warranted mileage.

BCA operates vehicle defleeting, auctioning and remarketing, as well as providing stock finance and software for dealers. It also owns retail trade-in portals We Buy Any Car in the UK and CarTrade2B in Germany.

The company floated on the London Stock Exchange in 2015. Its top shareholders are Invesco Asset Management, with 22.5% of shares; Woodford Investment Management, with 16%; and American financial services firm Capital Group, with 10.6%.