CDR Acquires BCA For $621M

New York private equity firm Clayton, Dubilier & Rice LLC agreed Thursday to acquire BCA, a European used auto sales company, providing an exit for midmarket London buyout shop Montagu Private Equity LLP.
Sources close to the transaction said CDR paid around £390 million ($621 million).
The deal is the latest sign of renewed life in both the buyout market and the battered global auto industry.
BCA, based in Hindhead, England, sells more than £4 billion of used vehicles annually. As the dominant firm in the European market, the 60-plus-year-old company operates 45 remarketing centers across 12 countries.
Senior management will retain an undisclosed equity stake after the deal closes. Jon Olsen will remain BCA's chief executive, while Fred Kindle, a London-based CD&R partner, will become chairman.
"BCA is a market-leading business-to-business services company with a strong management team and market position, attractive risk profile and exciting growth prospects," said David Novak, a London-based CD&R partner. "The company is exceptionally well-positioned to continue to deliver high levels of performance."
UBS handled the BCA auction, which attracted bids from London private equity firms Cinven Ltd., Bridgepoint Capital Ltd. and BC Partners Ltd.
Montagu bought BCA for £450 million in 2006 from a group of private investors and reportedly split the business into separate operating and property companies. According to the Financial Times, the property company has about £250 million of debt and will likely not be sold.
CDR has been notably active in recent months. In late November it completed a $477 million equity investment in JohnsonDiversey Inc., part of a $2.6 billion recapitalization of the Sturtevant, Wis.-based provider of cleaning, polishing and odor-control products to hotels, restaurants and other businesses.
The BCA transaction is expected to close in the first quarter of 2010.
CDR took financial advice from HSBC Holdings plc and Bank of America Merrill Lynch. It received legal counsel from Clifford Chance LLP and Debevoise & Plimpton LLP.