CD&R exits BCA for £1.2 billion

New York-based Clayton, Dubilier & Rice has exited its interest in BCA to Haversham Holdings. The transaction is valued at approximately £1.2 billion.

Shareholders of BCA, which include CD&R funds, will receive £701 million in cash and £104 million in stock.

Clayton, Dubilier & Rice declined to comment on the transaction.

The deal is expected to close in early April, and sources familiar with the matter place the exit at a 3x return for CD&R.

BCA is Europe’s largest used vehicle network, and was first acquired by CD&R from Montagu Private Equity in 2009. That transaction was valued at approximately £400m. BCA has since expanded its network to include operations in Brazil.

CD&R has seen a few notable exits recently including Envision Healthcare which returned above 5x, and B&M Retail which held its IPO in June 2014.

CD&R is currently investing out of its $6.4 billion Fund IX, which closed in May according to Private Equity International’s research and analytics division. Last May, CD&R acquired Healogics, the largest advanced wound care services provider in the US, from Metalmark Capital and Scale Venture Partners for $910 million. In December 2013, the firm also invested in PharMEDium, a national provider of hospital pharmacy-outsourced sterile compounding services.

Earlier this month, the firm appointed Ravi Sachdev, a former managing director and co-head of healthcare services at J.P. Morgan to partner to work on healthcare investments, PEI reported at the time.