The private equity owners of the UK’s two largest roadside recovery businesses, the AA and the RAC, are moving toward potential exits next year, with both companies targeting valuations of around £5bn, according to a report by the Financial Times.
The AA, controlled by TowerBrook Capital Partners, Warburg Pincus, and Stonepeak, is exploring a sale, with Rothschild and JPMorgan advising on strategic options. Expressions of interest from private equity and strategic buyers have reportedly emerged at the £5bn level, and a London stock market listing remains on the table.
Rival RAC, owned by CVC Capital Partners, GIC, and Silver Lake Partners, is also preparing for a potential exit, with an IPO in London seen as the most likely route, though a sale could not be ruled out. City advisers note the rarity of two highly comparable businesses seeking exits at similar valuations simultaneously, which could test investor appetite in the market.
The AA has significantly strengthened its financial position since its 2020 buyout for £219m, reducing debt to 4.1x earnings and posting H1 2025 revenue of £623m, up 5%, with adjusted EBITDA rising 8% to £243m. It serves 17 million customers and has expanded offerings through partnerships, including a recent deal with OpenAI.
The RAC, with 15 million members, reported an 8% increase in revenue to £411m and a 12% rise in earnings to £152m in H1 2025. Both firms are expected to highlight growth opportunities from the increasing adoption of electric vehicles, which require more specialised roadside support.
