Car park giant could be sold in €730m deal
Car park operator NCP could be sold by its private equity owner following a strategic review, it was reported today.
Cinven is understood to have asked investment bank Citigroup to advise on a possible sale or refinancing of NCP, which owns 600 car parks in the UK and employs 4,000 staff.
According to the Sunday Times, no final decision has been taken but a deal could value the business at around £500m (€730m).
NCP has been in business for more than 70 years and has built up a portfolio that includes car parks at ten of the UK’s busiest airports such as Heathrow and Gatwick.
Its property assets in the UK are valued at £392m (€572m), while the group has diversified into new areas such as wheel clamp and removal services for local authorities.
A parking management contract for the City of Sunderland Council began in 2003 and NCP also manages on-street enforcement for the Congestion Charge in London on behalf of transport authorities in the capital.
Cinven paid €1.3bn (£820m) for NCP in May 2002 and then completed a £600m (€876m) sale and leaseback of more than 100 car parks.
The newspaper report said bankers believe Cinven will more than double its original investment in NCP, which still owns a property portfolio of 170 freehold or long-leasehold car parks.
Turnover at NCP last year rose to £400m (€584m) and pre-tax profits totalled £40m (€58.4m).
