BCA parent Constellation buys CarNext
CarNext has been acquired by Constellation Automotive Group, the parent company of BCA, WeBuyAnyCar, Cinch, and other vehicle auction and remarketing companies. Both companies have confirmed the transaction.
Put together, CarNext and Constellation represent about 5% of Europe’s entire used-car market, or in absolute figures: about 2.7 million vehicles per year, representing about €21 billion, across 22 countries in Europe. About 2 million vehicles are sold via B2B channels, the rest mainly C2B, with about 100,000 sold B2C.
BCA remains the heavyweight in the Group, representing about 1.7 million vehicles per year across 14 countries.
CarNext started life as LeasePlan’s in-house remarketing subsidiary. In July this year, the company achieved its corporate independence, but with the same ownership structure as LeasePlan itself – a strong indication of the ambition to sell.
Among the consortium that owns both LeasePlan and CarNext is the British investment company TDR Capital, which is the majority shareholder in Constellation (also UK-based), so the deal does not come as a complete surprise.
The amount paid for CarNext has not been disclosed, but it follows a few months after Constellation raised €2 billion in capital. In exchange for the sale of CarNext to Constellation, all current shareholders in CarNext will receive shares in the new, merged company.
CarNext’s privileged relationship with LeasePlan will continue; in other words, LeasePlan will continue to supply CarNext annually with 250,000 ex-lease vehicles for sale. For this year, CarNext expects to sell about 210,000 used vehicles via B2B channels (in 22 countries), and the rest B2C (in 7 countries).