Acromas

Private equity-owned AA group bucks the recession

When Acromas, the holding company for two of Britain’s most iconic brands, the AA and Saga, was bought by Charterhouse, Permira and CVC, critics questioned whether the private equity model would work. In the toughest recession for decades, however, the company has proved incredibly resilient.

Management decisions taken over the past three years have enabled the company to buck the recession to deliver a strong performance in a tough economic climate. Its private equity owners have invested heavily in operational improvements, including state-of-the-art customer services, which Britain’s leading consumer group again named as best in class.

Between the AA and Saga, Acromas companies now serve 19 million customers – more than a quarter of the country. In the last year, at a time when most employers have frozen headcounts and many have had to make redundancies, the business has created nearly 500 new jobs, taking the total workforce to 12,000 people.

The AA plays a vital role in everyday life for millions of Britons. As the UK’s leading breakdown service, it serves 15 million members, while the online route planner calculates more than three million routes per week. The brand is also the largest independent travel publisher in the UK.

Meanwhile, at a time when print media has been heavily hit by declining sales, Saga Magazine goes from strength to strength as Britain’s most popular monthly subscription magazine, outselling its closest rival by over 500,000 copies a year.