Patron Capital has acquired Motor Fuels Group Limited (MFG) in a joint venture with a new management team backed by oil industry veteran, Alasdair Locke. MFG owns and operates 58 mostly freehold petrol filling stations and associated convenience retailing stores located throughout the United Kingdom; it is the fifth largest chain of independent petrol filling stations in the country.
Patron provided the majority of the equity for the transaction alongside Alasdair Locke and members of the management team. Debt finance was provided by Investec Growth & Acquisition Finance, part of Investec Bank plc. Financial terms of the transaction are not disclosed.
The Board of MFG now comprises forecourt sector investors William Bannister and Tom Biggart of Scottish Capital Group in the executive positions of Chief Executive Officer and Chief Investment Officer, with Alasdair Locke and Tim Allan of Scottish Capital Group assuming the roles of non-executive chairman and director respectively. In addition, to support Patron Capital and the MFG management team’s plans to grow the business via capital expenditure and acquisitions, MFG has agreed to hire Jeremy Clarke as its Managing Director; Jeremy will join MFG once he has fulfilled his contractual obligations to Murco UK as its Marketing Director.
Commenting on the acquisition, Stephen Green (pictured), Patron Capital’s Senior Partner, Special says: “This transaction is an excellent example of the real estate backed operating business investments that Patron Capital seeks, with significant opportunities for growth in a fragmented and consolidating sector.”
