The owners of the RAC are gearing up to launch a process that is anticipated to result in a £5bn sale or stock market listing of the breakdown recovery service later in 2026. According to sources at Sky News, the RAC’s shareholders are in the process of organizing a beauty parade of investment banks to be held in the upcoming days as they prepare to divest their stake.
Established in 1897 as the Automobile Club of Great Britain, the RAC is currently owned by buyout firms CVC Capital Partners and Silver Lake Partners, as well as the Singaporean state investment fund GIC. With approximately 15 million members, the RAC has disclosed its shareholders’ intentions to pursue an exit, a decision that was originally reported by Sky News last summer, with a public market listing being the favored choice.
In a similar vein, the AA, another prominent player in the breakdown recovery service sector, also has private equity investors backing its operations. These investors have engaged bankers to explore potential exit strategies. Towerbrook Capital Partners, Warburg Pincus, and Stonepeak, the collective owners of the AA, have enlisted the services of JP Morgan and Rothschild to assess the strategic options available to the company.
The RAC, a well-known consumer brand in Britain, is a significant employer with thousands of staff members. It is overseen by Chairman Rob Templeman, former chief of Debenhams, and led by Chief Executive Dave Hobday.
As of Friday, attempts to reach out to any of the RAC’s shareholders for comment were unsuccessful.
SOURCE