GIC, CVC Capital Partners snap up $3.28b stake in UK transport player

RAC is the UK's second-largest roadside assistance provider.

Singapore’s sovereign wealth fund GIC has entered a partnership with American private equity firm CVC Capital Partners to buy a majority stake in UK-based automotive service provider RAC.

The deal, reportedly worth $3.28 billion (€2.2 billion), will allow GIC and CVC to purchase the Carlyle Group’s stake in RAC.

In a joint release, GIC and CVC said that RAC presents a significant long-term growth opportunity, building on the company’s existing strengths.

This transaction is subject to customary regulatory approvals and is expected to close in early 2016.

“We welcome CVC as our new partner in the RAC. CVC brings a wealth of relevant experience, and as like-minded long-term investors we look forward to working with them in supporting the RAC on its continued development," said Henry Ormond, Senior Vice President at GIC.