A reader has furnished me with some information on the BSM takeover by Acromas. I’ve been getting a lot of hits on “AA buys BSM”.
In a statement, the AA has said that on 31st January 2011, Acromas Group acquired BSM. The acquisition in no way affects AA franchisees or their pupils. Nothing will change as a result of the acquisition. Acromas is a private equity company, which owns the AA.
Acromas – not the AA – has taken on the running of the BSM business, which was put into administration by its previous owners. Correction: Acromas has effected the purchase, but the running of BSM has been taken on by the AA. The AA and BSM are therefore sister companies, although the AA is running BSM.
Please refer to the PWC website for a full brief on the arrangments.
Both driving schools will be operated as separate businesses. Only ownership has changed. There are no changes to the franchise agreement or any other details of the existing business relationship between AA and its franchisees.
My own view is that the average man-in-the-street (i.e. pupils) won’t have a clue that anything has changed. However, I can’t see BSM franchisees being overly happy with their franchise fees if they stay as high as they currently are. Similarly, I doubt that Acromas has done its sums based on the huge fees BSM franchisees have been paying.
The information supplied above is purely from the AA franchisee’s perspective. I’d like to know what BSM franchisees are being told.
I’m sure that things on the BSM side will change. If any BSM readers know anything, drop me a line via the contact form.