In a statement issued on Christmas Eve, Montagu Private Equity has confirmed that it has reached an agreement to sell British Car Auctions (BCA) to Clayton, Dubilier & Rice (CD&R).

CD&R owns Hertz Car Rental. Hertz has a strong relationship with BCA, which remarkets its rental vehicles.

BCA has been on the market since September when Montagu announced its intention to sell the company three years after buying it in a £450 million deal.

However, analysts did not expect any agreement this year.

Montagu had previously told the City that it would not conclude its review of the remarketing organisation until early in the New Year.

The Financial Times reported in November that bids would be in the region of £400-500 million.

CD&R was one of three companies believed to be in the running to acquire BCA.

The company has run Hertz since buying it from Ford in 2005. 

David Novak, a CD&R partner, commented: “CD&R was attracted to BCA because it provides an opportunity to invest in Europe’s leading provider of used vehicle remarketing services behind a management team with a proven record of creating value, with a view to growing and expanding the business in both the UK and Europe.

“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.”

Jon Olsen, chief executive of BCA, added: “We are pleased that CD&R has acquired the business.

"Our customers should be reassured that we are committed to continuing the highest levels of service and intend to continue investing in the development of BCA.

"The senior management team is fully committed to staying with the business and to build on the success we have already achieved.”

BCA operates out of 45 remarketing centres in 12 countries and generates gross auction proceeds of around £4 billion per annum.

Read more about this major acquisition in the January 7 issue of Fleet News.