AA on road to £5bn sale or flotation, while RAC aims for London listing

AA sounds out buyers, and owners of fellow roadside assistance provider prefer IPO of similar valueThe private equity owners of the AA, Britain’s biggest roadside recovery business, are looking for a potential £5bn sale or stock market flotation, while the owners of the rival RAC are targeting a London listing with a similar valuation. The AA, which provides roadside assistance as well as insurance and driving lessons, is owned by a consortium including TowerBrook Capital Partners, Warburg Pincus and Stonepeak, and has been sounding out buyers, in news first reported by the Financial Times.The business is valued at £5bn and is thought to have sparked interest from private equity companies and strategic buyers. The owners are also considering floating the AA on the London stock market – a decade on from its flotation by previous private equity owners. The plans are still in the early stages. Continue reading…