AA: Shareholders weigh up major sale of stake in roadside breakdown giant
The AA’s shareholders are considering the sale of a significant stake in the £2.5bn breakdown specialists, as first reported by Sky News’ Mark Kleinmann.
Towerbrook Capital Partners and Warburg Pincus have hired Goldman Sachs to advise on the deal, which could result in three shareholders taking an equal slice of the company.
Analysts told Sky News that the two firms could value the road recovery group at more than £2.5bn including debt, although the exact valuation is currently unclear.
Talks are yet to formally begin, and both Towerbrook and The AA declined to comment when contacted by City A.M,.
The AA, which is due to release its full year results later this week, is one of the biggest financial services in the UK, with nearly 13 million customers.
In 2020, it signed off on a takeover deal with Towerbrook and Warburg in January 2021, after struggling with over £2.6bn of debt.
The breakdown specialists reported that last year, it had reduced net debt by £344m to £2.3b.
After the company was taken private two years ago, the company’s management was significantly altered. Former Lloyds Banking Group Executive Jakob Pfaudler is now the firm’s CEO, with Rick Haythornwaite, the former Centrica chair, acting as its chairman.
The company was previously merged with travel insurance company Saga, under Acromas. In 2014, it was listed on the London Stock Exchange by Acromas through an IPO.