UK’s Motor Fuel Group acquires rival MRH for £1.5bn

Motor Fuel Group (MFG) has acquired rival MRH, the largest petrol station and convenience store operator in the United Kingdom.

The acquisition deal, worth approximately £1.5 billion, will create the UK’s top 1 operator by number of sites and top 2 by fuel volume, according to a company release.

MFG and MRH together will operate more than 900 sites, which are predominantly company-owned and franchisee-operated and manage third-party fuel, convenience, and foodservice brands. These include 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.

“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,” said Alasdair Locke, Chairman of MFG and who will remain Chairman of the combined business.

MFG is owned by funds managed by private investment firm Clayton, Dubilier & Rice (CD&R), while MRH was backed by Lone Star Fund IX.

“As petrol forecourts transition to customer-focused convenience and food-to-go hubs for local communities, this platform is distinctly positioned to meet this growing demand across the U.K.,” said CD&R Partner Marco Herbst.

The transaction is expected to close in the second quarter of 2018, subject to customary regulatory approvals.