The private equity majority owner of Top 50 Indie MFG, Clayton, Dubilier & Rice (CD&R), has declined to comment on a Sky News story that it is on the verge of selling a large minority stake in the forecourt retailing business.
CD&R, which became the controlling shareholder of MFG in 2015 following a management buy-in four years prior, is close to announcing the transaction with US-based investment giant Apollo Global Management, according to Sky News.
Sky News says the announcement could be within days, after several months of talks between CD&R and a range of prospective investors in the company which is rapidly expanding its presence in the electric vehicle charging space.
The broadcaster reports that there has been a “large appetite” to invest in the next phase of MFG’s growth, which over the course of a decade has grown from a mid-sized industry player to being the largest independent petrol retailing operator with more than 1,200 sites.
Apollo’s investment is expected to be broadly in the range of 25-30%, with CD&R retaining a controlling stake of the business which has been valued at around £7 billion, says the Sky News story.
Under the leadership of chief executive William Bannister, and chief operating officer Jeremy Clarke, MFG has become the second-largest ultra rapid player in the UK, with over 1,000 chargers at 170 hubs across the UK. MFG aims to grow this figure to 3,000 by 2030, as well as to focus on its high-margin foodservice offering.
The St Albans-based business has also expanded from just under 50 sites 14 years ago, and received a boost last year when it added 337 forecourts to its portfolio from supermarket chain Morrisons. In this deal Morrisons, owned by CD&R, took a 20% stake in MFG.
In an interview with Forecourt Trader last year Bannister said that while he was not averse to further site expansion, his priority was to invest in the company’s existing infrastructure.
Apollo, and MFG also declined to comment.
