RAC Owners Prepare Strategic Review for Potential £5 Billion Exit

The private equity owners of the RAC are preparing to begin a formal process to explore options for selling or listing the breakdown recovery business, with a target valuation of approximately £5 billion later in 2026.

CVC Capital Partners, Silver Lake Partners, and Singapore’s GIC currently hold ownership of the RAC. The shareholders have arranged for investment banks to present proposals for advisory roles in the upcoming process.

The RAC’s leadership includes Rob Templeman as chair and Dave Hobday as chief executive. The company was originally established in 1897 as the Automobile Club of Great Britain and has since become a major provider of roadside assistance in the UK.

Over the past year, the RAC’s shareholders have been considering exit strategies, with a public market listing identified as a preferred option. The process to select advisers is scheduled to begin next week, following months of preparation.

What the numbers show

• The RAC reported revenue of about £411 million in the first half of 2025, an 8% increase
• Underlying earnings for the same period reached approximately £152 million, up 12%
• Membership numbers stood at 15 million, with 500,000 new breakdown members added in mid-2025

In addition to growth in its core business, the RAC reported the addition of 10,000 new motor insurance members during the first half of 2025. The company also increased its investment in digital and artificial intelligence initiatives during this period.

The RAC’s performance in 2025 included both rising revenues and membership, reflecting continued demand for its services. The company’s owners are seeking to capitalise on this growth as they evaluate exit options.

Elsewhere in the sector, the AA, another roadside assistance provider, is also reviewing its strategic options. The AA has appointed JP Morgan and Rothschild as advisers and is targeting a similar valuation of around £5 billion for a potential sale or flotation.

The RAC’s upcoming review process will involve presentations from investment banks, after which the owners will determine the next steps for a sale or public offering. The outcome is expected to shape the company’s future ownership structure.

* This article is based on publicly available information at the time of writing.