Thu, 24 Sep 2020 | BUSINESS NEWS
Roadside assistance provider the AA has said it is in talks over a possible all-cash acquisition by a consortium of private equity firms Towerbrook Capital Partners and Warburg Pincus.
The company also said that talks with Centerbridge Partners Europe and Platinum Equity Advisors had ended.
AA said: “The consortium has confirmed its strong interest in pursuing a possible all-cash offer for the company, including an intention to de-lever the AA’s capital structure significantly, consistent with the company’s objectives”.
The company, which was founded in 1905 and is well-known across Britain for its yellow recovery trucks, was floated in London by its previous private equity owners in 2014. However, its share price has experienced a slump in recent years, with concerns surrounding the size of its debts. Its current market value stands at £175 million.
AA said in a statement: "Any possible offer remains subject to a number of matters including, inter alia, the completion of the consortium's due diligence and the finalisation of documentation."
"The board now intends to progress its discussions with the consortium regarding a possible offer and a further announcement will be made in due course as appropriate."
The company added that its board is in discussions with other investors regarding alternative refinancing options, such as raising new equity. AA said earlier in the month that regulators had granted it an extension until September 29 for potential offers.
Find businesses for sale here.
If you are looking for an exit, we can help!
For sale is a long-established tree surgery and arboricultural services business with an excellent reputation, serving both domestic and commercial sectors across Southern England, including the Home Counties and London.
An opportunity has arisen to acquire a highly reputable provider of concrete block and barrier hire services to a range of prominent clients. Benefiting from almost two decades of trading, this company has achieved a solid position in the market as t...
An opportunity to acquire a reputable IT services company based along the M4 corridor with over 20 years of trading experience. The company has built and maintained a thriving, long-standing client base of businesses across a variety of sectors.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.