CVC set to buy up almost half of the RAC

 
Billy Bambrough
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F1 Grand Prix of Great Britain
CVC will be adding the repair company to it's already large stake in Formula 1 (Source: Getty)

CVC CAPITAL Partners, the largest shareholder in Formula One, will reportedly announce the purchase of almost 50 per cent of breakdown company RAC later today.

CVC will purchase the stake from rival private equity group Carlyle which bought the company in 2011, it was reported late last night.

Singaporean sovereign wealth fund GIC, will retain its near half stake it bought from Carlyle last year.

The deal will value RAC at around €2.2bn (£1.4bn).

It will be CVC’s first investment using its Strategic Opportunities Platform that it intends to use for longer term investments.

Carlyle has also looking into using long-term vehicles, sparking speculation that this is going to be a new trend in the buyout industry.

Insurance firm Aviva offloaded RAC in 2011 for £1bn.

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