Rob W 0 Posted June 25, 2007 Share Posted June 25, 2007 Saga to snap up motoring giant AA The deal will create one of the UK's largest businesses Saga, which sells holidays and other products to the over-50s, is to buy the motoring giant AA in a deal valuing the combined business at about £8bn. The BBC's business editor Robert Peston said the deal, creating a company with more than 11,000 employees, would value the AA business at about £3.4bn. Private equity firms Permira and CVC bought the AA for £1.7bn in 2004. But the deal proved controversial after the firm cut 3,000 jobs - equivalent to a quarter of the workforce. Union campaign Saga is also owned by a private equity firm, having been bought by Charterhouse for £1.35bn in 2005. Saga was founded in 1951 as a single hotel in Folkestone, but now has a database of 7.6 million customers and more than 2,500 staff. Trade unions have led a high-profile campaign against job losses at the AA, which they have cited as an example of what they say is ruthless cost-cutting by private equity firms. The head of Permira, Damon Buffini, was one of the four leading private equity bosses who appeared before MPs recently to defend the industry's record on managing businesses. They also defended the amount of tax that private equity firms and their bosses pay. Our business editor says the deal shows that the business has increased considerably in value, but he adds that the sale is likely to reopen the debate about how much private equity firms make from such investments. Link to comment Share on other sites More sharing options...
The Fish 11114 Posted June 25, 2007 Share Posted June 25, 2007 Saga? that's old news Link to comment Share on other sites More sharing options...
Jimbo 175 Posted June 25, 2007 Share Posted June 25, 2007 Permira have recently aquired Birds Eye, and so far they have made many cut backs, many redundancies, I have a 3 year protection plan for my contract and terms and conditions, I'm shitting myself for when that period ends, they certainly appear to be asset strippers. Link to comment Share on other sites More sharing options...
sweetleftpeg 0 Posted June 25, 2007 Share Posted June 25, 2007 There was an interesting program on the tele about them a few weeks ago, about them buying companies, asset stripping, making big cutbacks, then selling at a higher price. Unethical, but legal. Link to comment Share on other sites More sharing options...
The Fish 11114 Posted June 25, 2007 Share Posted June 25, 2007 bit miffed no one reacted to my "Saga.. old news" gag Link to comment Share on other sites More sharing options...
Rob W 0 Posted June 25, 2007 Author Share Posted June 25, 2007 Soem outfit called SAGA keep sending me stuff for old folk - obviously got the wrong name and address............................. Link to comment Share on other sites More sharing options...
Jimbo 175 Posted June 25, 2007 Share Posted June 25, 2007 Soem outfit called SAGA keep sending me stuff for old folk - obviously got the wrong name and address............................. Saga-lout if ever there was one tbh. Link to comment Share on other sites More sharing options...
Rob W 0 Posted June 25, 2007 Author Share Posted June 25, 2007 Soem outfit called SAGA keep sending me stuff for old folk - obviously got the wrong name and address............................. Saga-lout if ever there was one tbh. hurt I am, hurt.............. Link to comment Share on other sites More sharing options...
Isegrim 10049 Posted June 25, 2007 Share Posted June 25, 2007 When reading the title I thought it was about some brewery buying Alcoholics Anonymous... Link to comment Share on other sites More sharing options...
Rob W 0 Posted June 25, 2007 Author Share Posted June 25, 2007 When reading the title I thought it was about some brewery buying Alcoholics Anonymous... the two guiding stars of your journey through life eh? Link to comment Share on other sites More sharing options...
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