Tuesday 15 February 2022

Sale Of MFG Moving Forward

Following recent rumours, it appears that the £5bn sale of Motor Fuel Group (MFG), the forecourt operator controlled by the new owners of Morrisons, is going ahead.

According to Sky News, Clayton, Dubilier & Rice (CD&R) has lined up Citi, Deutsche Bank, Goldman Sachs, and Royal Bank of Canada to sell MFG, which operates around 900 sites across the UK.

MFG has grown substantially since CD&R bought it in 2015 for £500m. Three years later, the private equity firm paid £1.2bn to add MRH, the market leader, creating a group operating under fuel brands such as BP, Esso, Shell and Texaco.

MFG’s profits are understood to have risen about tenfold since CD&R’s acquisition with the company investing heavily in its convenience retailing proposition, featuring the likes of Costa Coffee, Greggs and Subway at many of its sites.

NamNews Implications:
  • MFG will be an attractive acquisition for either fuel companies or PE.
  • Either way, any supplier-MFG relationships will be financially driven…
  • …in order to maintain the profit impetus.
  • Therefore NAMs need to refine their skills in counting cost…
  • …and demonstrating the value of their proposals to MFG’s finances.
#Divestment #FinancialKPIs #GarageForeCourt

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