Delivering Value at Exit through Improved Energy Efficiency

Carlyle Europe Partners III, L.P.

In December 2015, Carlyle announced its exit from its investment in RAC, which is expected to close in the first half of 2016. RAC is the second-largest roadside assistance provider in the U.K. with approximately 8.6 million members. During Carlyle’s ownership, RAC’s revenues grew from £417 million in 2010 to £501 million in 2015. At the time we announced our exit, we noted: “RAC also delivered substantial reductions in energy consumption per breakdown for its vehicle fleet and through energy efficiency measures implemented at all U.K. sites, which jointly contributed to EBITDA and reduced carbon emissions.” At the same time, member satisfaction and retention improved.

Since Carlyle acquired the company four years ago, RAC’s management team transformed the business and delivered strong financial performance. Under their leadership, RAC strengthened and improved its core roadside business, building upon the high standards of customer service that earned it the reputation of “The Motorists’ Champion,” while expanding into new business areas, including telematics.

RAC reduced fuel consumption 10% per service breakdown event in its vehicle fleet by rolling out speed limiters and implementing satellite navigation and intelligent deployment systems. The company also identified opportunities to reduce energy use and costs at RAC’s office sites.

“Fuel costs are an important portion of the overall cost structure for RAC. Our efforts helped the company achieve 10% savings in fuel costs per service event—cost savings that accrue to the bottom line.”

Andrew Burgess
Managing Director
Carlyle Europe Partners