UK-based forecourt operator Motor Fuel Group (MFG) has acquired petrol station and convenience retail operator MRH for approximately £1.2bn.
MFG is supported by US-based private equity investment firm Clayton, Dubilier & Rice (CD&R).
CD&R partner Marco Herbst said: “Both MFG and MRH operate in a stable market and are highly focused on convenience with a track record of consistent growth and commitment to operational excellence.
“As petrol forecourts transition to customer-focused convenience and food-to-go hubs for local communities, this platform is distinctly positioned to meet this growing demand across the UK.”
The deal is expected to close by the second quarter of this year after obtaining customary regulatory approvals.
Upon completion of the deal, MFG and MRH will be jointly operating more than 900 sites, which will include fuel brands BP, Esso, Jet, Murco, Shell and Texaco.
The two companies will also operate certain retail brands that include Budgens, Costa Coffee, Greggs, Spar and Subway, as well as MRH-owned brand Hursts.
MFG chairman Alasdair Locke Alasdair Locke said: “This is a transformational milestone for both companies that we believe will make us an even stronger partner for fuel brands and retail customers seeking convenient foodservice options.
“We are excited to welcome the MRH team, who share a commitment to growth and innovation, as we work together to consolidate a highly-fragmented market and continue our expansion of retail offerings across the combined estate.”
Alasdair Locke will continue as chairman of the combined business, and CD&R funds senior adviser Sir Terry Leahy will continue to serve on the board of directors and chair the executive committee of the board.
CD&R partner David Novak said: “These characteristics align with our retail investment strategy and make this a compelling platform with exciting prospects for continued success.
“It is another example of our European strategy to back strong management teams to build market-leading companies serving high-growth markets.”