Patron Capital Partners-backed Motor Fuel Group (MFG) has acquired Murco Petroleum’s retail assets in a deal said to be worth just shy of £200m.
Patron made a further capital injection to help fund the transaction, via its fourth fund. Media reports suggest the deal was valued at just less than £200m.
The bolt-on is in line with Patron's buy-and-build strategy for MFG's growth. The business currently operates 60 petrol stations in the UK under the BP and Jet brands, with forecourt shops under the Costcutter brand.
The Murco acquisition will add another 228 fuelling stations to the MFG network, as well as contracts to supply fuel to a further 226 dealerships owned by third parties. The stations will retain the Murco brand, with the forecourt shops operating under the Costcutter brand.
Patron acquired MFG in December 2011 as part of a management buy-in with the new management team from Scottish Capital Group. Oil industry veteran Alasdair Locke also invested in the transaction, which was reported to be worth £40m.
Investec Bank provided debt for the transaction.
Murco was founded in 1960 in St Albans by the Murphy Oil Corporation. The business introduced a shopping format onto its petrol station forecourts in the 1970s. It acquired Costcutter Supermarket Group in 1996 and the brand is now present at all 228 petrol stations.
Murco sold its stake in Milford Haven Refinery at the end of July to US entrepreneur Gary Klesch. It wholly acquired the company in 2007. In 2008, Murco bought Petrol Express for £52m.
Following the deal, MFG owns and operates 288 petrol filling stations and related convenience retailing stores in the UK.
Keith Breslauer is the managing director of Patron, while Stephen Green is senior partner. Stephen White represents Investec.
Equity – Pinsent Masons (Legal); Barber Wadlow (Financial due diligence); SLR Consulting (Environmental due diligence).
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