AA Ireland (not owned by the AA Plc) sold again
All,
AA Ireland, which was spun out of the AA Plc in 2016 for €157m, is reported in the Irish Press to have been sold to Further Global Capital Management for a reported €240m+. It was sold in 2016 for 6.7x EBITDA, but we have no clarity on the current EBITDA levels. On revenue multiples, revenue in 2016 was c.€40m (3.9x) and Revenue for FY20 (ending January) of €62m implying a similar 3.9x multiple.
This deal shows the attractiveness of Breakdown Service providers. Without further information it is difficult to get a comparable EBITDA multiple, but for reference, the debt in the AA plc is 2.7x revenue.
We await the outcome of the bidding process.
Happy to discuss.
Tomás