AA Ireland continues to grow as sale process continues

Sources have told Newstalk that the Irish operation's parent company has held discussions with possible buyers

AA Ireland continues to grow as sale process continues

Matt Faber / PA

AA Ireland, the Irish insurance and motoring services subsidiary of the quoted UK company generated a 3% increase in sales last year to £38m when currency fluctuations are excluded, and an 8% increase in the number of personal members.

Operating profits were flat at just under £40m as the firm faced higher marketing and staff costs.

Newstalk reported last month that the AA has held discussions with a number of possible buyers about the sale of AA Ireland.

Possible buyers include the Irish private equity firms, FL Capital Partners and Carlyle Cardinal Ireland, in which Enterprise Ireland has a stake.

The AA parent group declined to comment on the sale process yesterday but with its own pre-tax profits falling by two-thirds to £17m last year and with debts of close to £3bn sterling, it’s likely to be motivated to push through with a sale.

AA Ireland employs close to 500 people and provides motor, home and other insurance products, car breakdown services, AA Roadwatch and a range of other travel and accommodation advisory services.

It has operated in Ireland since 1910.