By Marietta Cauchi Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Clayton Dubilier & Rice Inc. is in exclusive talks to buy car sales company British Car Auctions, people familiar with the situation told Dow Jones Newswires Friday. The U.S. buyout shop, which already owns car rental company Hertz, beat off competition from U.K. rivals Bridgepoint and Cinven Group Ltd. who had also submitted second-round bids for the company which is being sold by Montagu Private Equity Ltd. Clayton Dubilier & Rice have offered around GBP400 million, the people said. Montagu bought the company in 2006 for around GBP450 million. The sale, which is being run by UBS AG (UBS), includes the operating company but not its property assets. British Car Auctions arranges for the sale of both new and used cars in auctions and via direct contact with major manufacturers. It handles some 1.4 million vehicles across Europe every year and generates around GBP3.3 billion annual gross revenue from 100 auctions a week. Montagu is also in the process of selling defense survival equipment company Survitec and recently entered exclusive talks with Warburg Pincus. The secondary sales illustrate how private equity activity is gaining momentum as equity markets have rallied and debt markets are reopening. -By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
