Montagu Private Equity ("Montagu"), one of Europe's leading private equity companies, announces the sale of British Car Auctions ("BCA"), Europe's leading vehicle remarketing business, to CD&R, the result of a competitive bid process.

Montagu led the buyout of BCA in October 2006 from a collection of private shareholders. The business was divided into an operating company, which is being sold to CD&R, and a property arm, which is being retained by Montagu. 

Under Montagu's ownership, BCA has grown its sales and profit by more than 30%. This is as a result of the management team's execution of their business plan, supported by a significant investment programme into new sites, technology development and two strategic acquisitions. 

Wiet Stokhuyzen, Montagu Private Equity Director, said: 

"BCA is a highly attractive business which has shown resilience and continued growth in spite of the recession. It is run by a talented and ambitious management team who have a clear vision for BCA and we expect the business to continue to excel. This transaction will generate a good return for Montagu investors and illustrates that there is a strong market for first-rate companies. It is also a further example of the strength of Montagu's portfolio, which is diversified across a number of defensive businesses."

Jon Olsen, CEO of BCA, said:

"We are proud of the progress the business has made over the last three years. Montagu has been a supportive partner in the further development of BCA as Europe's pre-eminent used vehicle remarketer. Going into 2010 we have more sites selling more vehicles to more customers via more channels than ever before. This will enable us to continue to deliver the high level of service our customers have come to expect. As a consequence, we look to the future with confidence and look forward to working with CD&R in continuing to grow our business."

Montagu Private Equity was advised by UBS Investment Bank.