GIC’s deal with the US private equity firm will mean that the two firms will jointly own a majority stake in the business, with RAC management holding the remaining shares.

The deal follows Carlyle’s acquisition of the RAC in 2011 and is expected to be completed by the end of the year. As a result, RAC will not be pursuing an IPO at this time.



Andrew Burgess, partner, The Carlyle Group, said:  ‘We are delighted to welcome GIC as a partner in RAC. GIC is a high calibre, long-term investor that shares Carlyle’s vision for RAC. Both Carlyle and GIC believe that RAC has a clear strategy with significant growth potential, which its talented and experienced management team will continue to deliver. GIC will provide a solid partnership for the business.’

Henry Ormond, senior vice president, GIC Special Investments, added: ‘RAC is a good example of GIC’s investment objectives as a long-term investor.  RAC combines both consistently strong financial performance, driven by the outstanding quality of service it offers its members, and continued growth potential. We are delighted to have the opportunity to partner with the management team and The Carlyle Group, and to support RAC's future success.’

The RAC added that the deal is ‘very good news for RAC’s employees, members and customers as they back the continuing investment and long-term growth plan for the business’.

The RAC is the second-largest roadside assistance provider in the UK and has approximately 8 million roadside members as of 30th June 2014.