British Car Auctions has been acquiried by Haversham Holdings, a consortium of investors, in a deal anticipated last week.

The board of Haversham announced at just after midday that it had reached an agreement that values BCA at £1.2 billion and is funded through placing of new ordinary shares and a new debt facility.

Avril Palmer-Baunack, executive chairman of Haversham, said: "The acquisition of BCA represents an important strategic step for Haversham into the automotive sector. 

"BCA is a market-leading business with a unique position in the used vehicle marketplace.

"Haversham's management team sees exciting growth opportunities in the changing European used vehicle market and plans to refresh BCA's strategy to enhance its strong growth record.  We would like to thank our existing and new shareholders for their strong support and look forward to working with the management team at BCA to create long-term value."

The company will be re-named BCA Marketplace plc.

Haversham was set up last year with the aim of buying “substantial companies and businesses in the UK and European automotive, support services, leasing, engineering or manufacturing sectors”.

It is led by Avril Palmer-Baunack, who used to run the vehicle logistics business Autologic and ran the haulier Stobart. She is reported to have the backing of a funding group comprising including Aviva Investors, Artemis, Invesco and Schroders.

The private equity firm Clayton Dubilier & Rice (CD&R) acquired BCA in 2009. After the IPO of BCA failed last year the equity firm has been exploring options of selling the business.