RAC drops float plan as Singapore invests

Its management team, including boss Chris Woodhouse, will hold a small stake

25 September 2014

Britain's oldest roadside recovery group, RAC, today put plans for a London listing on hold after securing investment from Singapore’s sovereign wealth fund.

Although the terms of the deal were not disclosed, GIC is understood to have taken a near 50% stake in RAC alongside the private equity group Carlyle, which bought the company from Aviva for £1 billion in 2011.

Its management team, including boss Chris Woodhouse, will also hold a small stake in the company that is now valued at about £2 billion.

Carlyle has invested £40 million in RAC over the past three years, helping it lift its revenues from £433m to £485m.

The company said it “will not be pursuing an initial public offering at this time”, having been tipped to float before the end of the year like its rival AA, which today appointed insurance industry veteran Andrew Blowers as a non-executive director.

Woodhouse said: “GIC joining forces with Carlyle 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.”

RAC drops float plan as Singapore invests

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