The private equity backer of Motor Fuel Group (MFG), one of Britain’s biggest petrol forecourt empires, is exploring the sale of a stake in a deal that could value it at about £7bn.
Sky News has learnt that Clayton Dubilier & Rice (CDR), which has built MFG from a mid-sized industry player over the course of more than a decade, is working with advisers to examine options for selling a large minority shareholding.
City sources said this weekend that CD&R was expected to run a process during the coming months, with a deal anticipated later this year.
A stake of roughly 25-30% is expected to change hands, although the final shape of any deal has yet to be determined.
A so-called continuation vehicle common in private equity transactions is understood to have been ruled out by CD&R.
MFG is now the largest independent forecourt operator in the UK, having grown from 360 sites at the point of CD&R’s acquisition of the company.
It trades under a number of brands, including Esso and Shell.
Lazard, the investment bank, has been working with CD&R on the preparatory work for a minority sale.
CD&R, which also owns Morrisons, united MFG’s petrol forecourt businesses with that of the supermarket chain in a £2.5bn transaction which completed last year.
MFG now comprises roughly 1,200 sites across Britain, with pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of about £700m expected in this financial year.
A previous attempt by CD&R to sell the company in 2022 was derailed in part by Vladimir Putin’s invasion of Ukraine and a deteriorating macroeconomic environment.
It is now focused on its role in the energy transition, with hundreds of electric vehicle charging points installed across its network, and growing its high-margin foodservice offering.
MFG has outlined plans to invest £400m in EV charging, and is now the second-largest Ultra Rapid player in the UK – which delivers 100 miles of range in 10 minutes – with close to…
