The roadside assistance firm AA is exploring a potential sale or public listing. Private equity owners Warburg Pincus, TowerBrook, and Stonepeak have hired advisers JP Morgan and Rothschild for the review, valuing the business around five billion pounds. This follows a similar evaluation by rival RAC, which is also considering a London IPO next year.
Both companies have worked to reduce their heavy debt loads ahead of any move. The AA reported higher revenue and profit recently, with its net debt leverage falling to 4.1 times earnings. The RAC also showed improved finances, with leverage down to 4.6 times earnings.
These possible listings could provide a needed boost for London's quiet market for new share offerings. The AA has a turbulent history as a public company before being taken private at a low share price in 2021. The RAC, similarly, has passed through multiple private equity owners over the years. Their parallel efforts signal a potential shift in ownership for Britain's two major motoring organizations.
Both companies have worked to reduce their heavy debt loads ahead of any move. The AA reported higher revenue and profit recently, with its net debt leverage falling to 4.1 times earnings. The RAC also showed improved finances, with leverage down to 4.6 times earnings.
These possible listings could provide a needed boost for London's quiet market for new share offerings. The AA has a turbulent history as a public company before being taken private at a low share price in 2021. The RAC, similarly, has passed through multiple private equity owners over the years. Their parallel efforts signal a potential shift in ownership for Britain's two major motoring organizations.
