UK insurer Norwich Union has sold four businesses operated by the RAC to a South African transportation business in a drive to divest itself of non-core businesses, according to a report from the Eastern Daily Press.
The Aviva-owned company is selling truck and van dealership operator Lex Commercial; automotive warehouse and parts distribution business Lex Auto Logistics; logistics service provider Lex Fleetserve and Ministry of Defence vehicle fleet servicing company Lex Multipart Defence. The units have been sold to Imperial Holdings for GBP50 million.
Norwich Union acquired roadside assistance organization the RAC last year for GBP1.1 billion. Hayley Stimpson, a spokesman for NU-owner Aviva, told the Eastern Daily Press: When we acquired the RAC we said that we would be looking to sell some business units which were not at the core of the RAC operation.
We have agreed to sell these four Lex businesses to Imperial, which has a wide range of interests in transportation and logistics. We felt it would be in the best interests of staff if they were part of a company which was committed to that particular market.