The owners of the historic RAC breakdown recovery service have shifted into high gear with plans for a major London stock market listing that could value the business at approximately £5 billion. Sky News has learned that the trio of investment firms controlling the 129-year-old motoring organisation have appointed leading financial institutions, including the prestigious Goldman Sachs, to oversee what promises to be one of the most significant initial public offerings on the London market during 2026.
Investment Banks Take the Wheel
The selection of Goldman Sachs and other investment banks represents a crucial step forward in the RAC's journey toward becoming a publicly traded company. This move follows Sky News's initial revelation last summer that the shareholders were actively exploring exit strategies, with a stock market flotation emerging as their preferred route. While a private sale remains a theoretical alternative, the current momentum clearly favours a public listing that would bring one of Britain's most iconic consumer brands to the London Stock Exchange.
Ownership Structure and Market Position
The RAC, originally founded in 1897 as the Automobile Club of Great Britain, is currently owned by a consortium of sophisticated investors. This group includes the private equity giants CVC Capital Partners and Silver Lake Partners, alongside the substantial Singaporean sovereign wealth fund GIC. Together, they oversee an organisation that boasts an impressive membership base of around 15 million drivers across the United Kingdom, employing thousands of staff nationwide.
Under the leadership of chairman Rob Templeman, the former chief executive of Debenhams, and current CEO Dave Hobday, the RAC has maintained its position as a trusted household name. The potential £5 billion valuation reflects not only its extensive membership but also its strong brand recognition and operational scale within the competitive breakdown recovery and motoring services sector.
Parallel Developments in the Industry
Interestingly, the RAC's flotation plans coincide with similar strategic movements at its main competitor, the AA. That organisation, which is also backed by private equity investors including TowerBrook Capital Partners, Warburg Pincus and Stonepeak, has appointed JP Morgan and Rothschild to examine its own strategic options. This parallel activity suggests a broader trend within the motoring services industry, as private equity owners seek to realise their investments through public market listings or sales.
What Comes Next for the RAC?
With investment banks now formally engaged, the RAC's shareholders will work closely with their advisors to prepare the company for the rigorous scrutiny of public markets. This process will involve detailed financial disclosures, roadshows to potential investors, and the establishment of a corporate governance framework suitable for a listed entity. The timing aims for a 2026 listing, positioning it as a flagship transaction for London's financial markets during that year.
When approached for comment, representatives of the RAC's shareholder group were unavailable. However, the appointment of Goldman Sachs signals serious intent and provides the financial firepower and expertise necessary to navigate a complex public offering. As preparations advance, the motoring and financial communities will watch closely to see whether this £5 billion float successfully crosses the finish line, bringing a new chapter to the RAC's long and storied history.
