motor fuel group Archives - Ireland's Forecourt & Convenience Retailer

Morrisons owner CD&R planning £2.5bn purchase of facilities management giants

Linda Stewart — Wed, 18 May 2022 08:23:47 +0000

Morrisons owner Clayton Dubilier & Rice (CD&R) is reported to be in talks to buy significant stakes in Atalian Servest and OCS, which between them employ close to 200,000 people around the world.

City sources said the deals could together be valued at approximately £2.5bn, the bulk of which would be accounted for by Atalian Servest, Sky News reported.

Combining the two companies would create a global powerhouse in facilities management, an industry in which scale is critical to profitability.

One insider said that the takeovers were not certain to happen, but that CD&R was in detailed talks with both target companies, and that it was conceivable that it could reach an agreement with one or both within weeks.

Banks are said to have been approached about providing finance for the deals.

The private equity group has become one of the most prominent investors in British companies in recent years, and is now in the process of exploring a sale of Motor Fuel Group, the UK’s biggest independent petrol retailer.

It won a bidding war for Morrisons against Fortress Investment Group, and has previously owned well-known British businesses such as B&M, the discount retailer.

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Motor Fuel Group owner lines up banks for £5bn auction

Linda Stewart — Tue, 22 Feb 2022 10:08:51 +0000

The owner of Motor Fuel Group (MFG), Britain’s biggest independent petrol forecourts operator, has picked the banks that will oversee a £5bn sale.
The private equity firm Clayton Dubilier & Rice (CD&R) is lining up Citi, Deutsche Bank, Goldman Sachs and Royal Bank of Canada to sell MFG.
The company, which trades from roughly 900 sites across the UK, has been striving to position itself at the heart of the drive to electrify Britain’s automotive industry.
It said recently that it would spend £50m this year on installing 350 rapid vehicle chargers across its estate.
The Motor Fuel Group (MFG) first electric vehicle (EV) only forecourt and valeting centre dedicated solely to ultra-rapid chargers in the North-West of England at its Stretford branch on the Chester Road, Manchester.
MFG has grown substantially since CD&R bought it in 2015 from Patron Capital Partners in a deal worth about £500m.
Three years later, it paid £1.2bn to add MRH, the market leader, creating a group operating under fuel brands such as BP, Esso, Shell and Texaco.
Profits are understood to have risen about tenfold since CD&R’s original acquisition of MFG.
The company has invested heavily in its convenience retailing proposition, featuring the likes of Costa Coffee, Greggs and Subway at many of its sites.

MFG’s increased focus on electrification could appeal to infrastructure investors who could seek to partner with each other to bid for the company.
A deal could also attract interest from oil companies attempting to harness the global energy transition.

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Motor Fuel Group owners eyeing £5bn sale of petrol forecourts giant

Linda Stewart — Wed, 19 Jan 2022 10:42:13 +0000

UK independent petrol forecourt operating giant Motor Fuel Group is kicking off plans for a sale that could value it at about £5bn.

MFG, which is owned by the private equity firm Clayton Dubilier & Rice (CD&R), has invited investment banks to pitch for a mandate to sell the company, which trades from roughly 900 sites across the UK, according to Sky News.

MFG said recently that it would spend £50m this year on installing 350 rapid vehicle chargers across its estate.

The company has grown substantially since CD&R bought it in 2015 from Patron Capital Partners in a deal worth about £500m.

Three years later, it paid £1.2bn to add market leader MRH, creating a group operating under fuel brands such as BP, Esso, Shell and Texaco.

Profits are understood to have risen approximately tenfold since CD&R’s original acquisition of MFG.

The company has invested heavily in its convenience retailing proposition, featuring the likes of Costa Coffee, Greggs and Subway at many of its sites.

The CD&R-owned company competes with supermarket-owned fuel chains, as well as the likes of EG Group, which is owned by Mohsin and Zuber Issa in conjunction with TDR Capital.

MFG’s increased focus on electrification may appeal to infrastructure investors who could seek to partner with each other to bid for the company, according to banking sources.

A deal could also attract interest from oil companies attempting to harness the global energy transition, they added.

MFG is run by William Bannister, who acquired the business in 2011 through a management buy-in, while it is chaired by Alasdair Locke, a serial entrepreneur in the energy industry.

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