Who said news goes quiet over Christmas? While most people were winding down for the festive period, Europe’s largest remarketing company was preparing the press release announcing its sale to an American private equity group.

BCA’s announcement, at 4pm on Christmas Eve, took everyone by surprise – a deal was not expected before the New Year. The national newspapers didn’t pick it up until a few days after – the timing of the announcement was down to the lawyers, apparently.
When Montagu acquired BCA for £450m from private shareholders in autumn 2006, it inherited a pan-European remarketing business turning over £3.3bn from 40 sites in 11 countries. After a three-year investment programme, BCA is now a £4bn company with 45 sites in 12 countries.

Its new owner, Clayton, Dubilier & Rice, has stated its intention to continue expanding into new countries while investing in new services. It paid £390 million for the business but that didn’t include ownership of the auction sites, valued at £250 million, which Montagu retains.

BCA has been reasonably well shielded from the economic downturn, despite a hit at the lower end of its business as the scrappage scheme removed many 10-year-old cars from its auction halls. 

Demand for used cars was strong last year and has started well this year. Residual values have risen due to a shortage of stock. 

It puts the company in a strong position for its new owners. They intend to retain the existing management team – a good decision. Jon Olsen, Andrew Hulme and their senior managers are well respected in the remarketing sector and have done a good job driving BCA forward in a competitive marketplace.

Remarketing in the UK is changing as the influence of the internet opens up opportunities for new entrants such as Carsite and Autoquake to sell cars online. BCA has had to evolve to retain its No1 position, which it has done well. 

But it will come under increasing pressure as the likes of Scottish Motor Auctions and regional operators such as Aston Barclay step up their activity in the fleet sector. And it has its old foe Manheim constantly breathing down its neck.
It certainly won’t be a quiet time for BCA.