AA primed for new phase of growth following £450m investment despite profit slump
US-based alternative investment firm Stonepeak has bought up a significant stake in UK automotive company AA.
The company said today that it has reached an agreement for 15 per cent of the company with its two majority shareholders, Towerbrook Capital Partners and Warburg Pincus.
Stonepeak will invest £450m through a combination of common and preferred equity at an enterprise value of approximately £4bn.
Both Towerbrook and Warburg Pincus remain the AA’s majority shareholders following the transaction, positions they have held since the consortium purchased the then-struggling company for £219m in 2021.
The AA was de-listed from the London Stock Exchange as a result of the sale, a position it had held for seven years.
Jakob Pfaudler, AA chief executive, said: “We are delighted to welcome Stonepeak as a new shareholder in the AA, as they bring a wealth of skills and expertise in transportation and critical infrastructure.”
We look forward to working with them and our current owners, TowerBrook and Warburg Pincus, as we embark on the next stage of our strategy.”
Nikolaus Woloszczuk, senior managing director at Stonepeak, added: “With its market leading position, scale, iconic brand, and the resilient nature of its underlying market, we believe that the AA has the right fundamentals in place to accelerate growth, and we look forward to working with the AA, Warburg Pincus, and TowerBrook, as the company continues its development.”
The news comes two months after the company reported a pre-tax profit dive from £40m to £23m year on year in a “challenging economic and competitive environment,” as earnings in its primary roadside recovery business hit by cost inflation.