American KAR swallows Belgian CarsOnTheWeb
Posted On November 29, 2018
American KAR Auction Services swallows its Belgian branch companion, CarsOnTheWeb, that had become one of Europe’s largest online selling platforms of second-hand cars in the last 14 years.
A bite that costs KAR initially 91 million euro and that can become 156 million if certain goals are met in the future.
Remarketing second-hand fleet cars
CarsOnTheWeb is specialized in ‘remarketing’ second-hand cars, organizing auctions of mostly end of contract cars of leasing companies, rental companies and big fleet owners. Customers – some 40.000 – are professional dealers, often in Eastern Europe.
CarsOnTheWeb is market leader in Belgium and a top player in the Netherlands, but is active in more than 50 countries selling over 42.000 cars last year, realizing a turnover of nearly 400 million euro. For the next years a growth to 70.000 cars is expected with revenues climbing to 550 million euro.
Only active in UK in Europe
The deal is interesting for the Americans, as they are mostly active in North and Central America and in Europe only in the UK so far.
KAR Auction Services, listed on the stock market has sold a mere 5,5 million cars last year with a market value of 40 billion dollar.