1st Jun 2015 12:22
LONDON (Alliance News) - BCA Marketplace PLC Monday said it has struck a deal to acquire UK-based motor auction and services group SMA Vehicle Remarketing Ltd for GBP43 million.
BCA said SMA sells vehicles online and through its physical auction sites in Kinross, Edinburgh, Birmingham, Newcastle and Leeds. The company posted adjusted earnings before interest, taxation, depreciation and amortisation of GBP4.7 million for the year to the end of October 2014, on revenue of GBP37.2 million.
BCA, which operates the British Car Auctions brand, said it has acquired SMA for an enterprise value of GBP43 million, including the repayment of existing debt, and has funded the deal via its existing cash resources.
"We are delighted to have completed this value-accretive acquisition so soon after listing BCA and to be delivering on our previously stated intention to pursue both organic and non-organic routes to accelerate growth of the auction exchange and support services," said BCA Executive Chairman Avril Palmer-Baunack.
BCA also said it has successfully syndicated its existing GBP200 million term loan and GBP100 million revolving credit facility. Due to robust demand, it has increased the size of the term loan to GBP275 million, bringing its total facilities to GBP375 million.
Shares in BCA were up 0.2% to 162.25 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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