RAC hires new chairman as it readies flotation plans

RAC has appointed CBI president Sir Michael Rake as its new chairman as it prepares for a possible stock market listing.

The breakdown recovery and insurance provider has also bolstered its board, hiring Moneysupermarket chief executive Peter Plumb as a non-executive director.

Other additions to the board include advertising agency AMV BBDO chief executive Cilla Snowball as non-executive director and David Lowden as a senior independent director.

RAC’s current chairman Rob Templeman will remain on the board, moving to a non-executive director role.

RAC, which current owner Carlyle Group bought from insurer Aviva in 2011, is widely believed to be planning a flotation, which could value the company at up to £2bn, according to some reports.

Rake said in a statement: “RAC has a powerful brand and an exciting future. It is trusted by over eight million members and the significant investment that has gone into the business over the past three years positions RAC for continuing growth.

“I look forward to working with the experienced and entrepreneurial management team and the high calibre non-executive team that has been put in place.”

RAC chief executive Chris Woodhouse added: “Mike brings a new and fresh perspective to RAC as well as significant business acumen. He adds unparalleled Board experience as we enter an exciting stage of our corporate development and move into the next stage of our growth.”