New company to be worth over £6bn
Saga and will merge to form a company valued at over £6bn.
Both the AA and SAGA, which specialises in products for the over 50s, will continue to trade under their own brands.
The new company, which will include more than 11,000 employees, has been valued at £6.15 billion, with the AA worth £3.35bn and Saga £2.8bn.
Private Equity Firms Permira and CVC will own 42.5% of the business, while Charterhouse will hold 37.5% and management and staff the remaining 20%.
The new company will be headed up Saga chief executive, Andrew Goodsell. AA CEO Tim Parker will leave the group once the deal, subject to regulatory approval, is completed.
Mr Goodsell said:
“We have taken a really close look and concluded that that there are significant advantages in combining Saga and the AA’s experience, expertise, systems and negotiating power, while maintaining their separate and very distinct brands and personalities. In combination we can strengthen Saga’s leading position in the 50+ market, and the AA as the pre-eminent organisation for the motorist.”