CVC teams up with GIC for RAC takeover

CVC invested via its Strategic Opportunities Platform, marking the first time it has invested from this fund. Launched last year, the vehicle is designed for co-investments in longer-term holdings, targeting stable, low-growth companies expected to generate returns in the mid-teens.

It is understood CVC has acquired just less than a 50% stake in RAC, and that the deal gave the company an enterprise value of £1.4bn.

Following the deal, CVC will invest in RAC's technology, data and telematics platform.

Previous investment
Carlyle acquired RAC from Aviva for £1bn in June 2011. According to unquote" data, the deal valued the business at around 12x EBITDA. The GP invested via its €5.4bn Carlyle Europe Partners III fund.

Under Carlyle's stewardship, RAC grew its revenues from £417m in 2010 to £498m in 2014.

GIC became an investor in RAC last year.

Company
Established in 1897, RAC is the UK's second-largest roadside assistance provider with 8.6 million members, comprising both private and business motorists. It offers breakdown assistance, insurance, used-car vehicle inspections and checks, traffic and travel information, and legal services.

In 2014, the company generated revenues of £498m and EBITDA of £169m.

People
Chris Woodhouse is CEO of RAC. Marc Boughton is managing partner and co-head of CVC's Strategic Opportunities Platform. Andrew Burgess is managing director at Carlyle. Henry Ormond is senior vice-president at GIC.

Advisers
Equity (GIC) – Freshfields Bruckhaus Deringer (Legal).
Equity (CVC) – Clifford Chance (Legal).
Vendor – Linklaters, Alex Woodward, Chris Boycott (Legal).
Management - Travers Smith, Chris Hale, Adam Orr, Jeremy Dennison, Gemma Phillips, Adam Martin, Adrian Duncan (Legal).  

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• Topics
• Buyouts
• Exits
• Consumer
• UK / Ireland
• CVC Capital Partners
• Carlyle Group
• Secondary buyout