CD&R parks British Car Auctions in portfolio

CD&R, the new private equity owner of BCA, owns car rental group Hertz, which already uses BCA to sell used vehicles when it renews its fleet.

The company was originally purchased by Montagu from its owners, including Conservative Party deputy chairman Lord Ashcroft, in 2006 for around £450m (€499.2m).

With 45 remarketing centres spread across 12 countries, BCA annually sells over £4bn (€4.4bn) of used vehicles, ranging from nearly-new and ex-lease stock to budget and older product. In addition to selling vehicles through physical auctions, BCA is experiencing growth from its online offering, and expects this to continue in the future.

David Wasserman, a New York-based CD&R partner, said, “Our work with Hertz and other similar services companies makes us very comfortable with the business model and value proposition of BCA. We look forward to supporting the company as it pursues a number of exciting long-term growth opportunities, including expansion into new countries, the introduction of new services and strategic acquisitions.”

Founded in 1978, CD&R has managed the investment of more than $12bn in 43 US and European businesses. The firm is based in New York and London. In October, the firm invested $477m for a 46 per cent stake in commercial cleaning, sanitation and hygiene solutions provider JohnsonDiversey. The firm also recently made a $250m investment in NCI Building Systems, a New York Stock Exchange-listed manufacturer of metal products for the non-residential building industry.

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