Centrica Sells U.K.’s AA for $3.18 Billion

July 2, 2004

The British utility group Centrica has agreed to sell its Automobile Association (AA) unit to a group of private investors for £1.75 billion ($3.18 billion).

The AA, which is roughly equivalent to the AAA in the U.S., has over 15 million customers. It provides roadside services and trip planning, as well as insurance. Centrica, a conglomerate formed out of the privatization of British Gas, bought the AA for £1.1 billion ($2 billion) in 1999.

According to news reports, the private investors plan to offer shares in the AA to the public within five years.