RAC to augment corporate services under new co-shareholder
The move comes four years after Carlyle bought the RAC from Aviva for £1.0bn, and sees GIC, Singapore’s sovereign wealth fund which became a joint investor a year ago, retain its stake.
CVC’s investment was made from its Strategic Opportunities Platform, established in response to growing demand from large investors to be able to invest for the long term in stable, high quality businesses.
In a statement, CVC said it has: “a deep understanding of investing in businesses in the motoring services industry and believes there is a significant long-term growth opportunity, building on the RAC’s existing strengths. CVC, along with co-shareholder GIC, intends to continue the extensive investment that has been made in the RAC’s technology, data and telematics platform to augment the range and convenience of services to members and corporate clients.”
Chris Woodhouse, CEO of the RAC, added: “We are really looking forward to working with CVC and our existing partner GIC as we enter the next phase of our development. With their significant experience and long-term capital, we are confident that they are the perfect partners to further our success as one of the UK’s major roadside assistance providers. I would also like to take the opportunity to thank Carlyle for their support over the last four years.”
Henry Ormond, senior vice president at GIC, commented: “We welcome CVC as our new partner in the RAC. CVC brings a wealth of relevant experience, and as like-minded long-term investors we look forward to working with them in supporting the RAC on its continued development. We are also grateful to Carlyle for their significant contributions to the business since they first invested in 2011.”
The transaction is subject to customary regulatory approvals and is expected to close in early 2016.