Carlyle To Sell Majority Stake In UK-based RAC To GIC

(RTTNews) - Asset management fund Carlyle Group LP (CG) has agreed to sell a stake in British roadside assistance company RAC Ltd. to GIC, a Singapore-based wealth fund.

The companies did not disclose any financial details or amount of stake sold, however in a statement revealed that Carlyle and GIC will jointly own a majority stake in the business with RAC management holding the remaining shares. The investment is expected to be completed by the end of the year.

According to media reports, the deal values RAC at more than 2 billion pounds or $3.3 billion. RAC is the second-largest roadside assistance provider in the UK and has approximately 8 million roadside members as of June 30, 2014, the company said. The company generated revenues of 485 million pounds, compared to 433 million pound last year.

Carlyle was planning an initial public offering of RAC on the London Stock Exchange, however the company said it will not pursue an IPO because of GIC's investment.

Henry Ormond, Senior Vice President, GIC Special Investments said, "RAC is a good example of GIC's investment objectives as a long-term investor. RAC combines both consistently strong financial performance, driven by the outstanding quality of service it offers its members, and continued growth potential."