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TDR Capital in 'advanced talks' over £1.9bn BCA acquisition

TDR Capital is in advanced talks to buy BCA Marketplace for £1.9bn.

The Financial Times reported this morning (June 20) that shares in the remarketing specialist had jumped 22% to 237p following news of the potential acquisition this morning.

BCA has confirmed discussions with TDR, one of the co-owners of the leasing company Leaseplan, to buy it out at a price of 243p a share were “at an advanced stage” following its earlier rejection of a £1.6bn bid from private equity group, Apax Partners.

That proposed deal had valued the owning used car specialist at £2 a share.

According to the FT, the board of BCA plans to unanimously recommend shareholders accept it.

TDR Capital is best known in the UK as the owner of David Lloyd Leisure.

Apax Partners initially withdrew its takeover bid to acquire BCA Marketplace in August last year.

Apax had originally offered £1.61 billion for the business back in June, which was rejected by the BCA Marketplace board unanimously after it said it “undervalued the company”.

BCA's most recent set of annual results were published in June last year and showed that the group had boosted its operating profits by 17.9% from £74.3 million to £87.6m.

Group revenue was £2,431.5m (2017: £2,029.7m) and the business saw increased volumes across all divisions, with its UK Vehicle Remarketing division achieving over one million vehicles sold in the year.

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