Motor Fuel Group owner CD&R has sold a £500m minority stake in the business to a group of institutional investors led by Apollo Hybrid Value.
Revealed today (4 August), the sale will place a reported 25%-30% of MFG’s equity under Apollo’s control, and Apollo will appoint a representative to MFG’s board of directors.
CD&R will retain a weakened majority share of the business after the transaction, made through a newly created special purpose vehicle and closing in Q3 2025 subject to customary conditions. All other common equity in MFG is unaffected.
The transaction follows MFG’s early 2024 acquisition of 337 forecourts and more than 400 associated sites from Morrisons, also owned by CD&R. The £2.5bn deal simultaneously cut competition and helped MFG leapfrog Tesco as the UK’s biggest retailer in fuel volume, as well as significantly boosting the company’s electric vehicle charging capacity. Morrisons holds a 21% stake in MFG as a result of the deal.
The transaction had allowed CD&R to return “substantial capital” to its investors while “maintaining its commitment” to growing MFG, said Marco Herbst, partner at CD&R.
“CD&R first invested in MFG and the team behind it in 2015. Over the life of our investment, MFG has transformed; quadrupling its forecourt base while developing convenience retail, food-to-go and valeting services and creating a market-leading EV charging proposition,” Herbst said.
The UK’s largest independent forecourt operator, MFG proved a “compelling investment opportunity” according to Philip Cuff, partner at Apollo.
Praising its “clear leadership” in core markets and “strong operational performance”, he said Apollo was delighted to support its next phase of growth.
MFG chief executive William Bannister added he was looking forward to working alongside CD&R and the company’s new shareholders.
“Under CD&R’s ownership, MFG has become a British entrepreneurial success story, investing in jobs, critical infrastructure and the communities we serve. Our commitment remains firmly focused on delivering the highest-quality customer experience, whether through upgrading our convenience retail, enhancing our foodservice and vehicle valeting or making significant investments in EV charging to support the UK government’s energy transition.”
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