RAC Set for Major Sale or Listing Attempt by 2026
The owners of the RAC are poised to initiate a process potentially leading to a £5 billion sale or stock market listing of the renowned breakdown recovery service by 2026. Investment banks are expected to be evaluated in the coming days as shareholders prepare to divest their interests in the company.
Ownership and Shareholder Plans
Founded in 1897 as the Automobile Club of Great Britain, the RAC is currently held by private equity firms CVC Capital Partners and Silver Lake Partners, alongside the GIC, a state investment fund from Singapore. With a membership base of approximately 15 million, the RAC is recognised as one of the UK’s leading consumer brands.
Sky News reported last summer that the RAC’s shareholders were considering an exit strategy, with a preference for pursuing a public listing. This move comes amid a wider trend among similar firms.
Industry Context
In parallel, the AA, another prominent breakdown service, is also exploring its options for a possible exit from private equity backing. The AA is currently owned by Towerbrook Capital Partners, Warburg Pincus, and Stonepeak, who have employed JP Morgan and Rothschild to assess strategic alternatives.
Leadership and Employment Impact
The RAC employs thousands of staff and is governed by Rob Templeman, the former chief of Debenhams, while Dave Hobday serves as CEO. The potential sale or public listing could significantly impact the firm’s future direction and operations.
As of now, none of the RAC’s shareholders have provided comments regarding the impending plans for an exit.
Background
The RAC has navigated numerous changes and challenges since its inception, adapting its services to the evolving automotive landscape. The current shareholder interest in a divestment reflects broader trends within the sector, where firms are increasingly seeking to capitalise on their investments through public routes or sales.
Source: Original Article
