Patron Capital has sold Motor Fuel Group, the UK’s second largest independent petrol and convenience retailer, to New York-based private equity firm Clayton, Dubilier & Rice (CD&R) in a transaction valued at £500 mln (€685 mln).
Patron Capital has sold Motor Fuel Group, the UK’s second largest independent petrol and convenience retailer, to New York-based private equity firm Clayton, Dubilier & Rice (CD&R) in a transaction valued at £500 mln (€685 mln).
Patron, a UK-based private equity firm, acquired MFG in 2011 and put a new management team in place backed by Alasdair Locke, a co-investor and the former chairman of the Scottish oil services company, Abbot Group.
The MFG business has grown its forecourt network from 48 sites in 2011 to 373 local petrol station forecourt sites at present. In April 2015, Patron bought 90 petrol filling stations from Shell for an undisclosed amount to add to MFG's portfolio. In addition, MFG also operates a dealer network of more than 200 sites under the BP, Shell, Texaco and Jet brands and have retail partnerships with Costcutter and Costa Coffee.
Investment firm CD&R is partnering with the management of MFG to acquire the business, which generated over £1 bn of pro forma sales in 2014. The deal is expected to close in July, subject to customary regulatory approvals.
'Together with the management team and Alasdair Locke, we have succeeded in taking a complex property-backed business, driving operational efficiencies and rapidly transforming the company into a stable, profitable operating platform with potential for future growth,' commented Stephen Green, senior partner at Patron. 'The success of MFG – one of our largest investments to date and a highly profitable one – highlights the strength of our strategy of investing opportunistically in property-backed investments across Western Europe.'
'Alasdair Locke and the strong MFG management team have created a valuable portfolio of petrol and convenience retail outlets which we intend to further enhance and expand,' added CD&R partner David Novak.
Alasdair Locke will remain as chairman of MFG. Terry Leahy, a senior advisor to CD&R’s Funds, former chief executive of Tesco and current chairman of B&M European Value Retail, will also join the board.
CD&R was advised by Clifford Chance, Debevoise & Plimpton LLP, Ernst & Young and OC&C.
Patron was advised by Travers Smith and MFG was advised by Pinsent Masons.