Are the RAC owners driving back down the road towards a listing?

The private equity owners Carlyle Group are reportedly considering relisting the RAC, the UK based roadside assistance company that they acquired from Aviva Plc in September 2011.

Should the listing go ahead in September as speculated, then this would be the RAC’s second stint as a publicly traded company, having previously been trading as a listed company between 2002 and 2005, when the company was acquired for around £1.1bn by Aviva and subsequently de-listed.

Carlyle paid around £1bn for the company but, should the listing proceed, analysts are speculating the company would  now be worth in the region of £2bn, so generating a substantial return on investment for both Carlyle and a number of the RAC’s senior management.

If a value of £2bn were to be achieved, then this would somewhat overshadow the value placed on the AA, the RAC’s main competitor, that listed on the London Stock Exchange at the beginning of June raising just over £1.35bn.

Filed under: private equity, listing, UK, Carlyle