British Car Auctions (BCA), owner of online car buying service webuyanycar.com, is preparing to float on the stock market.
The company, which operates in 12 European countries as well as Brazil, is aiming to raise around £200m through placing at least 25 per cent of its issued share capital.
John Olsen, chief executive at BCA, said the IPO would take place in November, and told City A.M.: “The money we are raising will primarily be used to pay down debt in order to make our debt commensurate with that of a publicly listed company.
“We’re not raising any money in terms of a requirement for the company – we are reasonably cash generative and can support our growth prospects through that cash.”
Olsen added: “BCA comes to the market with an excellent track record of growth in revenues, earnings and strong cashflow generation.”
The deal is being overseen by Jefferies, JP Morgan and UBS Investment Bank among others.
BCA, currently owned by private equity house Clayton Dubilier & Rice, describes itself as the most prominent pan-European used vehicle marketplace operator.
The company launched webuyanycar.com in the Netherlands earlier this year, and a similar rollout in Germany is currently in development. The business is also launching a finance product for purchasers to give them sufficient liquidity to buy.
BEHIND THE DEAL
JEFFERIES | REINOUT KOOPMANS
1 Koopmans previously worked at Deutsche Bank in London, and McKinsey & Company in Germany and Asia
2 Koopmans joined Jefferies in 2011 as a managing director and co-head of European equity capital markets within the firm’s investment banking division
3 He is based in London and has previously advised on deals involving SSP, Zoopla, AO World, and earlier this year, worked with Xeros, which manufactures waterless washing machines
Jefferies is acting as joint bookrunners with HSBC Bank and Numis Securities,while JP Morgan and UBS act as joint global co-ordinators, sponsors and bookrunners, with Rothschild acting as financial adviser to the company and Linklaters providing legal advice