MPK Garages, which is ranked tenth in Forecourt Trader Top 50 Indies, has received a £14m funding package to pursue its growth plans, which could nearly double the size of its estate. 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.
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 sizeable 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."