Management Reshuffle as CVC and Permira Buy AA
Private equity firms Permira and CVC Capital Partners (CVC) have announced their acquisition of the AA. The companies have agreed to pay £1.75 billion, subject to regulatory approvals, for one of Britain’s best known motoring organisations.
The move has brought with it a number of significant personnel changes. When the deal is completed current managing director, Roger Wood, will retire. Sir Trevor Chinn, chairman of CVC portfolio company, Kwik-Fit, will become chairman of the AA. Current Kwik-Fit chief executive, Tim Parker, will relinquish his role and join Sir Trevor at the AA as chief executive.
CVC and Permira are committed to running the AA as an independent company and have plans to bring Kwik-Fit and the AA together. The companies intend to invest in the growth and development of the AA and will float the business on the stock market within the next five years
Sir Trevor Chinn, who will become chairman of the AA on completion of the deal, said: “The AA is a unique British brand that has given excellent service to motorists for 100 years based on the commitment of its employees. We are delighted to have the opportunity to continue building on that tradition. CVC and Permira bring a wealth of experience in growing top brand names and I look forward to working with them in developing this great business.”
Tim Parker, who will take over as chief executive, added: “The AA is an iconic brand with an enviable market position that is cherished by the British public. Its success owes so much to its employees who are utterly focused on providing excellent service to their members and customers. I feel very proud to be joining the team and relish the opportunity to work with them in taking the business forward.”
Between them CVC and Permira have an impressive track record for developing consumer businesses. These include Kwik-Fit, Debenhams, Halfords, William Hill, Homebase, Holmes Place, Travelodge and New Look.