TDR Capital to buy car auctioneer BCA in £2bn deal
Private equity group TDR Capital has agreed to buy BCA Marketplace in a deal that values the car auctioneer at £1.9bn.
The companies said on Wednesday that the cash offer of 243p per share was in line with the value it disclosed last week when they confirmed talks were at an advanced stage. BCA shares traded at 235p at close of trading on Tuesday, having risen around 20 per cent when news of the discussions with the buyout group broke.
The confirmation of the deal will come as a boost to Neil Woodford’s flagship fund, which froze £3.7bn of investor money this month amid liquidity concerns and is a major shareholder in BCA. Woodford Investment Management is one of the 44 per cent of shareholders to support the offer, TDR said.
BCA’s two largest shareholders are Invesco, at 23 per cent, and Woodford Investment Management, at 10 per cent. The majority of Woodford’s holdings are in his Equity Income Fund. The offer values BCA’s share capital at £1.9m, a premium of approximately 30 per cent to the value of the shares before the buyout offer was announced.
The agreement comes as the British car industry faces deep uncertainty, with its just-in-time supply chains reliant on frictionless trade with the EU. The industry’s trade body this week warned a no-deal Brexit would deliver a “knockout blow” to the competitiveness of Britain’s automotive sector.
TDR said it plans to carry out a review of BCA’s operations after the deal is completed, but that it has no immediate plans for changes.
“TDR believes that BCA is well placed to benefit from further growth within the automotive services industry,” the buyout group said.
The deal includes a dividend of 6.65 pence per BCA share. Bank of America and HSBC advised TDR, while Jefferies, Goldman Sachs and Kinmont were BCA’s financial advisers.
Full story: https://www.ft.com/content/5db...
Aston Barclay delivers three-click digital used car buyer strategy as part of new stock funding partnership with secure trust bank
Aston Barclay has completed the final piece of its digital remarketing transformation by launching a new wholesale online stock funding proposition for its buyer community.
Part of an exciting new business partnership with Secure Trust Bank and its dynamic new V12 Vehicle Finance brand, it enables buyers to fund stock as part of its strategy of connecting customers to cars.
It completes Aston Barclay’s ‘three-click transaction’ vision of buyers digitally searching, bidding on and funding their used vehicle stock via their Buyer’s App or desk top, fulfilling Aston Barclay’s aim of revolutionising remarketing through digitisation.
Branded as Aston Barclay Stock Funding, powered by Secure Trust Bank, it provides a class-leading wholesale funding proposition. 100% of the purchase invoice can be funded including buyer, online and transport fees, smart repair through Aston Barclay Enhanced up to £1,000, and Aston Barclay Assured.
Press Release: https://bit.ly/2wQL0vm
Manheim and Big Motoring World sign 5-year remarketing deal
Manheim has agreed a new five-year deal with used car supermarket operator Big Motoring World.
The partnership will see 50,000 part-exchange vehicles from the Kent-based top ID50 independent car retailer’s four car supermarket sites auctioned through Manheim’s Colchester remarketing centre on a sole supplier basis.
Cox Automotive UK chief executive, Martin Forbes, said: "This is great news for Cox Automotive that really demonstrates the importance of providing services that meet customer needs throughout the remarketing process.
Big Motoring World will also continue to use valuation services from Cox Automotive, Manheim’s parent company, to drive its part-exchange process, a statement issued by Cox revealed on June 20.
Full article: https://bit.ly/2x4NrKM
Aston Barclay urges operators to adapt to market evolution
Aston Barclay has highlighted the need for operators to employ different tactics to keep stocking days and conversion rates at acceptable levels. This comes in the expectation that the fleet remarketing sector is set to accelerate.
Aston Barclay’s Used Market Insights Report shows how with annual new car registrations greater than 2.6 million during 2015 and 2016, and average fleet replacement cycles currently running between 41 and 42 months, significant change within the remarketing fleet sector is likely within the coming years as greater volumes of vehicles return to market.
The result of this, according to Aston Barclay, will impact prices and, therefore, require different tactics from vendors to keep stocking days and conversion rates at an acceptable level.
It also puts much of the market evolution down to organic, market dynamics, but suggests Brexit and, more specifically, WLTP has accelerated the rate of change.
Full article: https://bit.ly/2IRoM36
Average values steady in May 2019, says BCA
The headline used car value at BCA increased in May, with the average value of £9,262 just slightly ahead of April’s figure. The two bank holidays and half-term break created the usual seasonal impact on demand, however even with these distractions, year-on-year values continued to climb for fleet & lease, dealer part-exchange and nearly-new vehicles. Stuart Pearson COO BCA UK Remarketing commented “The market has been moving through
some typical pricing realignment during April and May and, whilst these seasonal adjustments are to be expected, the incredibly buoyant market experienced during 2018 may have created some unrealistic expectations. We continue to work closely with our customers to ensure that they are fully appraised of trading conditions, utilising our unique BCA Valuations pricing intelligence to reflect remarketing sale values in real-time.”
Fleet & lease values averaged £11,370 at BCA in May 2019, ahead by £407 (3.7%) compared to a year ago. The retained value against original MRP (Manufacturers Retail Price) was down a percentage point at 42.4% when compared to 2018. Average age at time of sale has risen by one month to 39.9 months, while the average mileage of 39,216 was down slightly compared to a year ago.
Dealer part-exchange values continued to rise at BCA, with May 2019 showing a £159 increase year-on-year, equivalent to a 3% uplift and a marginal increase of April’s average value. The improved quality of product on offer in this sector is helping to keep values firm, with average age and mileage decreasing compared to the same month in 2018.
Demand at BCA for nearly-new vehicles continued into May, with values averaging £21,579, up by £1,549 (7.6%) compared to a year ago. Model mix has a significant effect in this low volume sector, with brand specific winners and losers.
Full press release: https://bit.ly/2XBJUT4