Update: TDR capital confirms £1.9 billion offer for BCA

26 June 2019

Private equity firm TDR Capital has now officially made a £1.9 billion (€2.1 billion) offer for WeBuyAnyCar owner BCA Marketplace.

′TDR believes that BCA is well placed to benefit from further growth within the automotive services industry,’

The offer is calculated on a base of 243 pence per share, accounting for a 25% uplift in BCA’s closing price on June 19. The offer comes after news that the two companies are in advanced talks over a potential deal earlier in the week.

′TDR believes that BCA is well placed to benefit from further growth within the automotive services industry,’ the buyout group told the Financial Times.

BCA marketplace sold more than one million cars last year and is a vital cog in the UK car market – the company has seen increased revenues and operating profits over the past year in a period of economic uncertainty for the UK market.

The investment would be a welcome boost for the UK automotive industry, with more money being pumped into the market at a time when Brexit uncertainty is off-putting for many other big players.

Future prospects

TDR said it had secured support for the offer from 44% of BCA’s shareholders, including letters of intent to vote in favour from Woodford Investment Management, Invesco Asset Management and Axa, according to Reuters.

′Having considered the proposal carefully together with its advisers, the Board of BCA confirms that should TDR or an entity controlled by TDR announce a firm intention to make an offer, subject to terms, the Board of BCA intends to recommend unanimously that BCA’s shareholders accept the offer,’ the UK company said in a statement.