Acromas results spur further split speculation

Alice Murray
31 July 2013

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Acromas, comprising AA and Saga and backed by CVC, Charterhouse and Permira, has reported a 4.9% uplift in EBITDA, reawakening speculation over how its financial backers will exit the business.

The group, which comprises roadside recovery business AA, over-50s insurer and leisure business Saga, BSM, Titan Travel and Allied Healthcare, also posted a 6.4% increase in turnover, which is expected to reach more than £2.2bn this year.

The group's CEO, Andrew Goodsell, speaking to the Telegraph, said that no decisions have been made about the future of the company. But he could not deny that the business would need to find an exit at some point. "I haven't got a defined timetable on this, but the three inevitabilities of life are death, taxes and, in a private equity-owned company, an exit event at some stage."

The financial results follow Acromas's recent £3bn refinancing in June.

CVC and Permira merged car breakdown recovery service AA with over-50s financial and travel service provider Saga in June 2007. Saga was acquired by Charterhouse in 2004 in a deal worth £1.35bn. CVC and Permira also purchased AA in 2004, in a deal worth £1.75bn.

Curiosity about the realisation of Acromas has been growing among market observers in recent years. With the group having sat in private equity portfolios for nearly 10 years, its sheer size has had many wondering how it could be divested. More recently, rumours have been circulating regarding the possible division of the group to make the assets more palatable for new investors.