The AA is to sell its Irish business to a pair of investment funds.
Carlyle Cardinal Ireland Fund, L.P. (CCI) and Carlyle Global Financial Services Partners II, L.P., (CGFSP) are to buy the business for €156.6m.
As an insurance broker-led business, AA Ireland differs significantly from the AA’s UK business, and synergies and potential cross sell opportunities are limited. AA Ireland and the AA will enter into a long term Ongoing Services Agreement which will preserve the current trading arrangements between the AA and AA Ireland for the benefit of both groups. The AA intends to use the net cash proceeds for partial repayment of its debt.
Bob Mackenzie, executive chairman of AA plc, said: "After a competitive process, we are very pleased to have reached agreement to sell AA Ireland. We believe that this is a good result for our shareholders and for AA Ireland and its employees.
“I would like to thank our 450 Irish colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of a great business. I am confident that the agreement with Carlyle and CCI presents an exciting opportunity for their continued success."