MPK Garages, which is ranked tenth in Forecourt Trader’s Top 50 Indies, has secured a £14m funding package to pursue its growth plans, which could nearly double the size of its estate.
With the investment, the business plans to acquire additional forecourts and refresh parts of its existing estate to capitalise on the growing market for convenience shopping.
BGF (Business Growth Fund) has invested £7m of growth capital, and HSBC is providing £7m in debt funding.
Leicester-headquartered MPK currently operates 25 sites across the UK, the majority of which are freehold and located on trunk or major roads. The business is targeting both freehold and leasehold properties and, plans to add up to 20 more sites over the next two years, with potential acquisitions already in the pipeline.
The existing estate operates under two fuel brands, Texaco and Gulf, while its Londis branded retail offering increasingly features Costa Coffee and Subway facilities.
Planned upgrades will focus on attracting the growing market for ‘food-for-later’ convenience shopping as well as continuing to cater to the ‘food-for-now’ customer demand.
MPK Garages was set up in 1979 by Shanti Majithia and his family, and is managed by managing director Paul Kershaw. Kershaw has been with the business since 2004 and prior to that held roles at Elf, Petrol Express, Fuel Force and Burmah Castrol.
Keith Fleming will join the board of the company as chairman following an introduction made by BGF. Fleming has held a number of senior executive roles at Blacks Leisure, Woolworths and B&Q.
Kershaw commented: “After building a sizable and profitable business, we feel that this is the right time to increase the number of sites we operate across the UK. The funding from BGF and HSBC will allow us to move forward immediately with these plans.
“Through BGF, we have also been able to appoint Keith Fleming as our new chairman. We are hugely excited by the opportunity to work with Keith who has already provided invaluable strategic insight and support to our plans.”
Gurinder Sunner of BGF said: “MPK is a scalable business that has built a valuable estate of well-located forecourts. They have a clear strategy for growing the business and driving profitability.
“The business’ management team has a wealth of experience in the sector and we’re delighted to be providing the financial firepower to help them execute their vision.”
The investment was led for BGF by Gurinder Sunner, Aaron Baker and Joanne Smith.
Phil Baigent and Lee Clifford of Freeths were MPK’s legal advisers on the deal with Philip Rogers of PKF Cooper Parry providing financial advice. BGF’s lawyers were John Heaton and Jody Webb of Higgs & Sons, with Vinny Patel of BDO providing financial advice.