CD&R’s British Car Auctions to float

The offering will comprise both new and existing shares in the business. BCA is aiming to raise around £200m through the sale of new shares.

CD&R will also sell some of its stake in the offering alongside management and other BCA employees. The company is expected to have a free float of around 25% following the listing.

BCA intends to use proceeds from the IPO to repay some of its existing debt alongside a refinancing. The company expects its net debt to sit at 3x adjusted EBITDA as a result.

JP Morgan Securities and UBS have been appointed as joint global coordinators, joint sponsors and joint bookrunners. HSBC, Jefferies International and Numis Securities are acting as joint bookrunners, while Rothschild is financial adviser to BCA.

CD&R acquired BCA in December 2009 for a reported £390m from Montagu Private Equity. The firm invested via its $5bn Clayton Dubilier & Rice Fund VIII, which closed in January 2010.

Montagu had launched a sale process for the business in September 2009, which was run by UBS and reportedly attracted bids from Cinven, Bridgepoint and BC Partners, according to unquote" data.

Montagu had acquired BCA in October 2006, paying £450m for a majority stake alongside management, which retained the balance. RBS provided a debt package for the deal.

Founded in 1946 and headquartered in Farnham, BCA is a used-vehicle auctioneer. It claims to have sold 900,000 vehicles to 55,000 buyers in 2013 and held 19,000 auctions.

In August 2013, the company acquired the brand webuyanycar, which it says purchased 120,000 vehicles last year. The brand recently entered the Netherlands market as it began its internationalisation strategy.

BCA's CEO is Jon Olsen; CD&R partner Fred Kindle is the company's non-executive chairman.

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