Aviva has agreed to sell roadside assistance company RAC to private equity firm Carlyle Group for £1bn.
Aviva said the price values RAC at 17 times 2010 net earnings. Completion, which is subject to regulatory approval, is expected at the end of the third quarter 2011.
Carlyle is fully supportive of the current RAC management team, led by managing director Angela Seymour-Jackson, Aviva said.
“The sale of RAC is another important step for Aviva and realises significant value for our shareholders," said Andrew Moss, group chief executive of Aviva, in a statement. "Together with the recent partial disposal of Delta Lloyd, it demonstrates clear delivery of our strategy and provides the flexibility to deepen our presence in the priority markets where we have strength and scale.”
Insurance Times revealed Aviva was planning to sell RAC back in March. Carlyle was one of several private equity companies in the running to buy the roadside assistance provider.
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