BCA Marketplace posts rise in profit as TDR Capital confirms £1.9bn offer
Private equity firm TDR Capital confirmed on Wednesday that it has made a £1.9bn offer for car auctioneer BCA Marketplace, as the WeBuyAnyCar.com owner posted a jump in full-year revenue and profit.
TDR Capital has offered 243p per share in cash for BCA. This is a 24.9% premium to the closing share price on 19 June, which was the day before BCA confirmed that it was in advanced discussions with TDR.
BCA directors plan to unanimously recommend that shareholders vote in favour of the offer, which they deem to be "fair and reasonable".
"The offer from TDR gives shareholders the opportunity to receive cash at a significant premium to the prevailing share price and will allow BCA to develop its business as a private, unlisted company," BCA said.
The offer came alongside the company's results for the year to the end of March 2019, which showed revenue rose to £3.0bn from £2.4bn, with pre-tax profit of £89.5m, up from £75.9m the year before.
BCA said the results were driven by a combination of strong volume growth in vehicle buying, its 1Europe strategy and continued greater operational integration of the businesses.
Adjusted earnings before interest, tax, depreciation and amortisation ticked up to £171.9m from £159.5m and the company lifted its full-year dividend to 9.65p a share from 8.55p.
BCA said UK vehicle remarketing and vehicle buying both exceeded £1bn revenue as vehicle purchases from both outsourced remarketing contracts and direct from consumers showed growth.
Executive chairman Avril Palmer-Baunack said: "BCA has delivered a good resilient performance in the year against the backdrop of a challenging new car market, subdued conditions in the more stable used car market and economic uncertainty created by Brexit.
"WeBuyAnyCar.com further demonstrated the strength of its brand, its growth potential and market leading position in UK car buying, delivering accelerated volumes in the second half of the year with growth of 23.2% (full year growth of 18.7%) whilst maintaining its 5* Trustpilot rating."
BCA said the new financial year has started well despite ongoing UK-specific, macroeconomic and political challenges.