Motor services group Lex Service has struck a £112 million deal to buy the windscreen replacement business Auto Windscreens.

The company said it would be incorporated into the RAC business it bought 18 months ago.

It claimed its acquisition, backed by the "power of the RAC brand", could now take on market leader Autoglass.

Auto Windscreens has 161 depots around the country, a fleet of 772 vans and a staff of more than 1,700. The business will now be rebranded RAC Auto Windscreens.

Lex's finance director Paul Hewitt said the deal reflected Lex's aim to develop a complete package of services.

As well as the RAC's breakdown service, Lex now offers car servicing, a range of financial products and traffic information online.

Its acquisition of RAC signalled a move away from the retail market, where a drop in new car prices led to a fall in profits earlier this year.

Mr Hewitt said Auto Windscreens was only around six per cent behind Autoglass in terms of market share.

He said: "There is enormous scope to apply the RAC brand to the business and grow it."

He said Lex referred more than 53,000 glass replacements or repairs annually, which would now be redirected to Auto Windscreens.