Completion of the acquisition of the AA plc and appointment of Non-Executive Chairman Mar 29, 2021
On 10th March 2021, Basing Bidco Limited, a newly incorporated entity indirectly wholly owned by a consortium of the TowerBrook Funds and the Warburg Pincus Funds, completed the recommended cash acquisition of the AA plc.
Under the terms of the acquisition, AA Shareholders were entitled to receive 35p in cash for each AA Share. The acquisition valued the entire issued and to be issued ordinary share capital of the AA at approximately £219 million.
In addition, Basing BidCo announced that it would inject a further £450m, to deleverage the business and put it on a more stable financial footing.
"We are delighted that this investment will safeguard the future of a much-loved business. The AA has a proud heritage but has struggled to reach its full growth potential in recent years. By deleveraging this fundamentally high-quality organisation, the business will be able to fully capitalise on its iconic brand, its market-leading positions, and its skilled and committed workforce – so that it can continue to deliver the exceptional levels of service it provides to customers across the country. We have no doubt that, on a stronger financial footing, the AA will go from strength to strength, to the benefit of all stakeholders."
Appointment of Non-Executive Chairman
The AA is also delighted to announce the appointment of Rick Haythornthwaite as Non-Executive Chairman, effective immediately. Rick is one of the UK’s most experienced and respected business leaders with a wealth of relevant experience, including as chairman, non-executive director, and CEO of some of the world’s leading companies in the technology, financial services and industrial sectors. As Chairman of the AA, Rick will work closely with the company’s leadership team and new shareholders to drive the business forward, better serve its customers and capitalise on its considerable strengths.
Rick is currently Chairman-Elect of Ocado plc, a role he will assume after the company’s AGM in May. He was previously Chairman of Mastercard Inc., a position he retired from at the end of last year having joined just before the IPO of the company in 2006. Rick is also the chairman and co-founder of QiO Technologies Ltd, an advanced analytics and AI software company. He has previously served as CEO of listed companies Invensys plc and Blue Circle Industries plc. His other senior board appointments have included Cookson Group plc, Lafarge SA, Imperial Chemical Industries plc, Land Securities plc, Network Rail Limited, Better Regulation Commission and Centrica plc.
Commenting on his appointment, Rick Haythornthwaite said: “First, I would like to thank John Leach, my predecessor, and his Board colleagues for their service. I am hugely excited to be joining the AA, which is one of Britain’s most iconic companies with a skilled and committed workforce, and a proud history of exceptional customer service. Like a number of the companies I have been fortunate to lead, the AA has a critical and trusted role in the lives of its many customers up and down the country. We now have an exciting opportunity to unlock the full potential of the business, leveraging the stronger financial platform and greater operational freedom that the new shareholders’ investment has provided. I have no doubt that the AA will go from strength-to-strength in the years ahead, and I look forward to working closely with the company’s leadership team and shareholders to achieve our ambitions for this wonderful business.”
|TowerBrook Capital Partners (U.K.) LLP
|+44 (0) 20 7451 2020
|Warburg Pincus International LLC
|+44 (0) 7471 992907