AA agrees sale to private equity groups - Financial Times

FILE PHOTO: An AA (Automobile Association) recovery vehicle drives along the M6 motorway near Knutsford, northern England, April 8, 2016. REUTERS/Phil Noble

(Reuters) - British roadside recovery company AA Plc has agreed to be acquired by private equity groups Warburg Pincus International and TowerBrook Capital Partners, the Financial Times reported on Tuesday, citing people familiar with the matter.

AA has accepted a cash offer of 35 pence a share, valuing the company at 218 million pounds ($290.96 million), the newspaper said

The proposal also includes an investment of around 380 million pounds to help pay down the company’s debt pile, AA said in a statement on Monday.

AA, founded by a group of motoring enthusiasts in 1905 and known in Britain for its yellow recovery vehicles, was taken public by its previous private equity owners in 2014.

TowerBrook Capital and Warburg Pincus declined to comment on the report while AA did not immediately respond to a request for comment.

Reporting by Ann Maria Shibu in Bengaluru, additional reporting by Bhargav Acharya; Editing by Devika Syamnath