AA to sell Irish business

NEW YORK: Motoring group AA Plc said it had agreed to sell its Irish business to a Carlyle Group fund and financial services buyout team for 156.6 million euros ($173.7 million).

AA, which provides roadside recovery and insurance broking services, said the sale of AA Ireland to Carlyle Cardinal Ireland Fund and Carlyle Global Financial Services Partners II is expected to close in late July.

Insurance broker-led AA Ireland differs significantly from the AA´s UK business, and synergies and potential cross sell opportunities are limited, AA said, adding that the two entities would sign a long-term ongoing services agreement.

AA Ireland generated a pretax profit of 12 million euros and had gross assets of 163 million euros as at Jan.

31, the company said.

AA, which listed in 2014, said it intended to use the proceeds to repay part of its debt.