I mentioned a week or two ago that Aviva had put the RAC up for sale. They’re asking a pretty penny for it, as well. An offer of around £1 billion would secure an immediate sale.
Aviva paid £1.1 billion six years ago – but they also took on existing debts and liabilities for pensions. The article here says that they may have to keep hold of £300 million worth of pension liabilties when they sell.
When Aviva bought the RAC the deal included BSM and Auto Windscreens – both of which were sold off for something between £500-600 million.
Let’s just remind ourselves what has happened to BSM (bought by Aviva, screwed, sold, screwed again, sold again) and Auto Windscreens (in administration). I’m not sure how well Lex Vehicle Leasing (also sold) is doing.
I’m sure there is a lesson to be learnt here about buyouts, particularly from those who have now lost their jobs.