Insurer Aviva sells RAC for Â£1 bln to equity group
British insurance giant Aviva on Thursday announced the sale of its roadside rescue division RAC to private equity firm Carlyle for £1 billion ($1.60 billion, 1.12 billion euros).
"Aviva plc announces that it has agreed to sell RAC Limited, the second largest UK roadside assistance provider, to The Carlyle Group ("Carlyle") for £1.0 billion," it said in an official statement.
The deal, which is expected to complete at the end of the third quarter of 2011 and is subject to competition and regulatory approvals, is part of Aviva's strategy to focus on insurance and savings businesses in priority markets.
"The sale of RAC is another important step for Aviva and realises significant value for our shareholders," added Aviva Chief Executive Andrew Moss.
"Together with the recent partial disposal of Delta Lloyd, it demonstrates clear delivery of our strategy and provides the flexibility to deepen our presence in the priority markets where we have strength and scale."
© 2011 AFP