Introduction to RAC Sale
The RAC’s owners will begin a process next week that is expected to culminate in a £5bn sale or listing of the roadside assistance service later in 2026. This move comes as RAC shareholders have organized a beauty parade of investment banks in the coming days as they prepare to offload their investments.
Background of RAC
The RAC, founded in 1897 as the Automobile Club of Great Britain, is owned by buyout firms CVC Capital Partners and Silver Lake Partners and Singaporean government investment fund GIC. It has around 15 million members, making it one of the UK’s largest and most well-known consumer brands.
Plans for Exit
RAC shareholders’ plans to seek an exit were revealed last summer, with a stock market listing seen as their preferred option. The company employs thousands of people and is led by chairman Rob Templeman, the former Debenhams boss, and managing director Dave Hobday.
Similar Moves in the Industry
The AA is also backed by private equity investors who have hired bankers to explore an exit. Towerbrook Capital Partners, Warburg Pincus, and Stonepeak, which jointly own AA, have appointed JP Morgan and Rothschild to review AA’s strategic options. This indicates a trend in the industry where major players are considering significant financial moves.
Next Steps
None of the RAC shareholders could be reached for comment on the plans. The process beginning next week is expected to lead to a major sale or listing, marking a significant development in the history of the RAC. With its large membership base and widespread recognition, the outcome of this process will be closely watched by both the financial and automotive industries.
