(Reuters) - Haversham Holdings Plc (>> Haversham Holdings PLC) said it would buy British Car Auctions Ltd from U.S. buyout group Clayton, Dubilier & Rice for about 1.23 billion pounds ($1.83 billion) in a cash- and-stock deal.

Haversham, which was set up to buy companies in the automotive sector, will fund the cash portion of the deal through a 1.03 billion pound share placement and a 200 million pound loan.

The company will issue 69.5 million shares to satisfy the stock portion of the transaction.

The deal is being structured as a debt-free, cash-free reverse-takeover of BCA and will create a company called BCA Marketplace Plc with a market capitalisation of about 1.17 billion pounds.

The new company is expected to list on the main board of the London Stock Exchange.

BCA began in 1946 as Southern Counties Car Auctions and sells more than 12,000 vehicles a week across the United Kingdom and Europe. The company said it expected to report 2014 revenue of about 886 million pounds.

Haversham executive chairman Avril Palmer-Baunack will become executive chairman of the new company.

Spencer Lock, BCA's managing director for the United Kingdom, will take the helm as group managing director of BCA Marketplace.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Maju Samuel and Simon Jennings)