MFG and Morrisons announce closing of petrol forecourts transaction
30th April 2024, Motor Fuel Group (together with certain affiliates, “MFG”) and Wm Morrison Supermarkets Limited (together with certain affiliates, “Morrisons”) are pleased to report that they have completed on the transaction announced on 30th January 2024. The transaction involves the acquisition by MFG of 337 Morrisons petrol forecourts (including fuel, convenience retail kiosk and ancillary services) and more than 400 associated sites across the UK for Ultra-Rapid electric vehicle (“EV”) charging development.
The value of the transaction stands at £2.5bn (the consideration to be in the form of cash and equity instruments) and includes Morrisons’ minority stake of approximately 20% equity interest in MFG.
ENDS
Advisors
MFG
EY UK acted as accounting advisor and Pinsent Masons, Freshfields Bruckhaus Deringer and Debevoise & Plimpton acted as legal advisors to MFG in connection with the transaction. Bank of America, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs and RBC Capital Markets acted as M&A advisors to MFG.
Morrisons
HSBC Bank plc and Rabobank acted as financial advisors to Morrisons in connection with the transaction. Kirkland & Ellis and Eversheds acted as legal advisors and Deloitte acted as accounting advisors to Morrisons.
Financing Banks
BNP Paribas, Deutsche Bank, RBC Capital Markets and SMBC lead the financing of the transaction. Committed financing was also received from Rabobank, ING, Lloyds, Santander, HSBC, NatWest, Société Générale, Citi, Goldman Sachs, Barclays and Bank of America.
About MFG
MFG is the leading mobility retailer in the United Kingdom by the number of sites and fuel volumes, with a network of more than 1,200 petrol stations and convenience retail shops, and more than 700 charge points. MFG provides essential refuelling and charging infrastructure, combined with a comprehensive range of services across the network, including a high-quality convenience offering, branded food-to-go offering, ultra-rapid electric vehicle charging points and car valeting. The Group operates primarily a franchise model, partnering with strong brands including Morrisons, Esso, BP, Shell, Texaco, and Jet on fuel, and with brands such Greggs, Subway, Costa, Pret, Burger King, Morrisons, Londis and Budgens on retail and food-to-go.
The recent acquisition of Morrisons petrol forecourts and associated sites will see MFG significantly accelerate its existing Ultra-Rapid EV charging roll-out strategy. MFG has already committed to investing c.£400 million in 3,000 Ultra-Rapid EV chargers across 500 sites in the UK by 2030, and to complete its EV roll-out to all suitable remaining locations in its network by 2035.
MFG benefits from a significant real estate ownership (89% of sites in freehold/long leasehold across the combined MFG and Morrisons estate).
About Morrisons
Headquartered in Bradford since 1899, Morrisons is a British food retailer with more than 100,000 colleagues in approximately 500 supermarkets and 1,000 convenience stores, in addition to wholesale supply arrangements to approximately 300 franchise sites. We are British farming’s single biggest direct customer with all Morrisons branded fresh meat and everything on our butchers’ counters being 100% British. Foodmakers and shopkeepers are at the heart of everything we do. We employ over 6,500 trained butchers, bakers, fishmongers, cheesemongers, florists and other skilled in-store specialists. We have 18 of our own food manufacturing sites preparing and making meat, fruit & veg, fish, bakery and fresh food products. We are unique in that we prepare and make more than half of the fresh food sold in our stores. We also offer popular services including cafés, pharmacies and dry cleaners with further services being added regularly.