First reported by PetrolWorld in the first week of January 2018, confirmation has come of the estimated £1.2 billion acquisition.
One of England’s largest fuel service station and convenience retail operator, MRH, has been taken over by Clayton, Dubilier & Rice-Backed Motor Fuel Group (MFG or the ‘Company’). The deal will create England’s #1 operator by number of sites and #2 by fuel volume. Funds managed by Clayton, Dubilier & Rice own MFG.
More than 900 fuel service station, which are predominantly company-owned and franchisee-operated will be operated by MFG and MRH together, and will manage third-party fuel, convenience, and foodservice brands, including fuel brands BP, Esso, Jet, Murco, Shell and Texaco and retail brands Budgens, Costa Coffee, Greggs, Spar and Subway, as well as the MRH-owned brand, Hursts. MFG and MRH sold approximately 3.6 billion liters of fuel in 2017, on a combined basis.
Chairman of MFG, Alasdair Locke, will continue as Chairman of the combined business, while Sir Terry Leahy, a Senior Advisor to CD&R’s funds and former chief executive of Tesco, will continue to serve on the board of directors and chair the Executive Committee of the Board.
CD&R Partner, Marco Herbst remarked that both MFG and MRH operate in a stable market and are highly focused on convenience with a track record of consistent growth and commitment to operational excellence. As retail fuel transition to customer-focused convenience and food-to-go hubs for local communities, this platform is distinctly positioned to meet this growing demand across England
“This is a transformational milestone for both companies that we believe will make us an even stronger partner for fuel brands and retail customers seeking convenient food service options,” said Alasdair Locke, Chairman of MFG. “We are excited to welcome the MRH team, who share a commitment to growth and innovation, as we work together to consolidate a highly- fragmented market and continue our expansion of retail offerings across the combined estate.”
CD&R Partner David Novak commented, “These characteristics align with our retail investment strategy and make this a compelling platform with exciting prospects for continued success. It is another example of our European strategy to back strong management teams to build market-leading companies serving high growth markets.”
Subject to customary regulatory approvals, the transaction is expected to close in the second quarter of 2018. PWKD01032018