AA selling off its Irish arm to private equity at €160 million
The AA has split off its Irish business and flogged it to a unit of American private-equity giant Carlyle for nearly €160 million (£132 million).
AA Ireland, which has 450 staff, will transfer to Carlyle Cardinal, a joint venture set up by the United States firm and Dublin-based Cardinal Capital to buy companies in Ireland.
Management, led by chief executive Brendan Nevin, will take a small stake in the spin-off.
AA, known for its distinctive yellow vans, confirmed the division was up for sale in May after it was approached by buyout groups about a potential takeover.
The group, which will use the money to pay down its debts, said there were “limited” cross-selling opportunities at the Irish business.
Breakdown cover in Ireland is often bundled with other insurance products like home insurance.
Breakdown services have long interested buyout groups.
AA was formerly co-owned by Permira, CVC and Charterhouse. Carlyle used to own a stake in RAC.
AA Ireland made pre-tax profits of €12 million last year and has gross assets of €163 million.