Carlyle Group has agreed to sell its stake in UK-based roadside rescue company RAC Ltd. to CVC Capital Partners Group. The sale, for an enterprise value of £2.2 billion ($3.3 billion), leaves Singaporean sovereign wealth fund GIC Pte. Ltd. in the co-driver’s seat at RAC. Carlyle’s Europe Partners III fund has made 3.8 times its investment, a person familiar with the situation told The Deal’s Jonathan Braude. Birmingham, England-based RAC is the second largest roadside assistance provider in the UK. As of end-September, the company has approximately 8.6 million members. In 2014, the RAC had revenue of £498 million and EBITDA of £169 million. Carlyle acquired RAC from Aviva in 2011 for £1 billion. Last year, GIC became a co-shareholder in RAC, buying part of Carlyle’s stake. With that transaction, Carlyle and GIC jointly own a majority stake in RAC, with company management holding the remaining shares. The sale of Carlyle’s stake to CVC is expected to close in early 2016.
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