PRESS: UK roadside recovery providers AA and RAC eye sale or IPO - FT
The private equity owners of rival roadside recovery firms AA and RAC are seeking exits, either via a sale to strategic buyers or other private equity firms or via a London listing, the Financial Times reported on Monday.
AA Ltd is owned by a consortium composed of private equity firms TowerBrook Capital Partners, Warburg Pincus LLC and Stonepeak Partners LP. It is working with advisers from Rothschild and JPMorgan on options for the business, which is valued at £5 billion, the FT said, citing ‘three people close to the situation’.
There have been expressions of interest in AA from strategic buyers - meaning operating companies in the same industry - and from other private equity firms.
A London listing also is an option for AA, the people told the FT.
However, rival firm RAC Motoring Services is working on a potential initial public offering in London, the FT said, citing ‘two people familiar with the situation’. This would value RAC at £5 billion as well.
City advisers commented that it would be unusual to have two similar businesses with similar valuations in the London market at the same time, the FT said.
RAC is owned by CVC Capital Partners PLC, GIC, and Silver Lake Partners. GIC is the sovereign investment fund of Singapore.
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