BCA Marketplace plc has announced that it has acquired SMA Vehicle Remarketing, the UK motor auction and services group, in a £43m deal.
SMA sells vehicles online and through its auction sites in Kinross, Edinburgh, Birmingham, Newcastle and Leeds offering dedicated sales for cars, light and heavy commercial vehicles.
In addition, SMA offers a range of “value-added services” to vendors including inspection services, transport services and tactical repair. The SMA Group recorded revenue of £37.2 million and adjusted EBITDA of £4.7 million in the year ended ctober 31 2014.
SMA has been acquired for an enterprise value of £43 million, including the repayment of its existing debt, which has been settled in cash through the use of BCA’s existing resources plus a temporary drawdown on the company’s revolving credit facility.
In a statement, BCA said: “The valuation is underpinned by strong earnings and a significant property portfolio of auction sites with a net book value of almost £20 million.”
BCA is also announcing the successful syndication of its existing £200 million term loan and £100 million revolving credit facility.
Avril Palmer-Baunack, executive chairman of BCA said: “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. We welcome the SMA management team led by Bob Anderson to the BCA Group and look forward to working with them to continue to provide a pre-eminent service to our buyers and vendors”.