Private Equity Giant CD&R Plans to Sell Minority Stake in Motor Fuel Group

February 16, 2025

By Evans Momodu
1 minute read
Published 12:47 UK (GMT), 16 February, 2025

Clayton Dubilier & Rice (CD&R), the private equity owner of Motor Fuel Group (MFG), is exploring the sale of a 25-30% stake in the company, which could value MFG at approximately £7 billion.

CD&R, which has transformed MFG into the UK’s largest independent forecourt operator, is working with investment bank Lazard to manage the process. A deal is expected later this year.

Key Highlights:

MFG Growth: Expanded from 360 sites at the time of CD&R’s acquisition to 1,200 locations across the UK.
Brand Partnerships: Operates under Esso, Shell, and other brands.
Financial Performance: Expected to report £700 million EBITDA this financial year.
Previous Sale Attempt: A 2022 sale was abandoned due to economic uncertainty following Russia’s invasion of Ukraine.
Energy Transition Plans: Investing £400 million in EV charging infrastructure and expanding high-margin foodservice offerings.

CD&R, which also owns Morrisons, previously merged MFG's forecourt business with the supermarket chain’s petrol stations in a £2.5 billion deal.

A continuation vehicle, often used in private equity, has been ruled out, meaning CD&R is looking for new external investors rather than rolling over its stake into a new fund.
Source: Sky news