Supercharging the deal
RBC Capital Markets acted as joint financial advisor and lead underwriter to MFG in a £2.5 billion cash and equity deal. MFG was acquired by Clayton, Dubilier and Rice (‘CD&R’) in 2015 and is now the leading UK mobility retailer by number of sites and fuel volume, providing essential refueling and EV charging infrastructure with a network of over 1,200 petrol stations and convenience retail shops.
Morrisons was acquired by CD&R in 2021 and is the UK’s fifth biggest grocery retailer, serving approximately 9 million customers every week and operating over 330 forecourt sites nationwide, in predominantly rising high-fuel-volume and high-traffic areas.
Morrisons is an iconic presence on British high streets and remained resilient amid a background of inflation and consumer cutbacks driven by the cost of living. However, it now benefits from the additional strategic backing provided by MFG, in a synergistic transaction which will help both partners expand and improve their operations while providing the best value for consumers.
The transaction will fuel further investment in the expansion of a leading EV charging network which will be instrumental in facilitating the UK government’s net zero objectives while supporting the phase-out of new diesel and petrol cars in 2035.
Fueling strategic partnership and EV hub expansion
As Europe and the UK drive the global electric vehicle revolution, RBC is dedicated to advising and financing companies throughout the entire value chain. Our expertise spans capital raising, M&A consolidation, and other capital market solutions, supporting this transition. We have a strong track record in providing strategic M&A advice and financial support to top mobility retail brands.
As such, RBC was well-placed to support MFG in their ambitious mobility retail journey. The strategic partnership will create synergies and scale advantages for both businesses. MFG benefits from acquiring a brand with an extensive national presence and significant brand recognition.
Morrison’s 20% minority stake in the deal serves to underscore the long-term nature of this commercial partnership. The transaction also supports its reduction of net leverage - acquired following its acquisition by CD&R - using £1.8 billion of its net transaction proceeds for deleveraging.
“MFG is proud to be a British entrepreneurial success story that is investing in jobs, critical infrastructure, and serving our communities to help the country achieve its decarbonization transition. This strategic acquisition, and the resulting partnership with the highly respected Morrisons brand, is the next major growth investment for MFG.”
William Bannister, MFG, CEO
Accelerating operations while powering increased market share
The transaction brought together RBC Capital Market’s strategic insights and financial capabilities to deliver optimal shareholder value for MFG stakeholders. The deal supports the expansion of crucial EV charging infrastructure and the growth of market-leading mobility retail operations, while creating jobs and driving consumer value through the expansion of two leading brands.
This deal grows MFG to become the nation’s number two convenience store operator and helps to expand MFG’s market-leading national EV charging network by supporting the investment and installation of approximately 800 150kW ultra-rapid EV chargers (UREV) within the next 5 years. It will also benefit from a complimentary retail and food offering, with improved procurement terms and enjoy the increased scale this partnership brings.
MFG benefits from partnering with the leading Morrisons’ supermarket brand, helping MFG grow to become the nation’s number two convenience store operator. It helps expand their market-leading national EV charging network by supporting the investment and installation of approximately 800 150kW ultra-rapid EV chargers (UREV) within the next 5 years. MFG will also benefit from a complimentary retail and food offering, with improved procurement terms and enjoy the increased scale this partnership brings.
At a time of volatility in the retail sector, and with the mobility sector at a crossroads, RBC supported the acceleration of a deal that sets out a bold path for the future, delivers great value for motorists, and enables the energy transition.