US consortium acquires major stake in MFG in billion pound deal

A consortium led by Apollo Hybrid Value, the investment arm of US giant Apollo, has acquired a £500 million minority stake in Motor Fuel Group (MFG), the United Kingdom’s largest forecourt operator. The transaction, involving a newly created special purpose vehicle, will see the consortium take a seat on MFG’s board, while the existing majority shareholder Clayton Dubilier & Rice (CDR) retains control of the business.

MFG, founded in 2004 by Sharad Mohanlal Raja and Sailesh Ranchhoddas Sejpal, operates around 1,200 sites nationally under brands such as Esso, BP and Shell. Recent years have seen it emerge as a pivotal player in the government’s strategy to expand electric vehicle (EV) charging infrastructure across the country. MFG is committing approximately £400 million towards building 500 ultrarapid EV charging sites by 2030, with a broader aim of finalising this rollout by 2035.

The sale follows a series of moves by CDR, including its 2015 entry into MFG and an important acquisition in early 2024—buying Morrisons’ 337-strong petrol forecourt business for £2.5 billion. This deal gave CDR further influence over the EV charging market through both MFG and Morrisons’ sites. Despite the stake sale to Apollo, CDR’s position as the primary shareholder remains unchanged, supported by Morrisons which holds a significant 21 per cent equity interest in MFG.

Recent financial results show the ongoing strength of MFG, with 2024 reporting record operating profits of £436.7 million, up 16.7 per cent on the previous year. Earnings before interest, taxation, depreciation and amortisation reached £516.6 million, a new high for the group.

William Bannister, chief executive of MFG, confirmed the company’s focus on delivering superior customer experience, highlighting upgrades in retail, food services, vehicle valeting and ongoing investment in EV charging capabilities. The capital raised by this deal is earmarked for redeeming a portion of CDR’s equity, while supporting the pace of innovation and growth within the company.

CDR and Apollo both emphasised confidence in MFG’s governance and growth prospects, pointing to the business’s central role in the UK’s energy transition and convenience retail landscape. The transaction is set for completion in the third quarter of 2025, marking a notable move in the ongoing evolution of the British forecourt sector, as rivals such as Asda also target leadership in this fast-changing market.