Fleet News

RAC businesses sold for £50m

A SOUTH African transport business has become the new owner of four businesses operated by the RAC as part of a £50 million deal.

Imperial Holdings has taken over truck and van dealership operator Lex Commercial, automotive warehouse and parts distribution business Lex Auto Logistics, logistics service provider Lex Fleetserve and Ministry of Defence vehicle fleet servicing company, Lex Multipart Defence.

Lex Defence, which provides services to support the vehicle fleet and logistic requirements of the British Armed Forces around the world, remains part of the RAC.

The move to dispose of the businesses is part of Norwich Union’s drive to concentrate on its core business activity.

Norwich Union parent company Aviva took over the businesses in March last year when it bought the RAC for £1.1 billion.

In October, it announced that it was selling its 50% stake in Lex Vehicle Leasing. The remaining 50% is owned by banking firm HBOS, which has exercised an option under the joint venture agreement to purchase the remaining half share.

A spokeswoman for Aviva this week said discussions between Aviva and HBOS to agree a ‘fair market value’ for LVL were still ongoing, which may or may not lead to the sale of Aviva’s interest in the joint venture.

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