Target Information

MRH, headquartered in Essex, is a prominent independent owner-operator of petrol filling stations in the United Kingdom. The company operates forecourts under various oil company brands, in addition to its proprietary brand known as “Torq.” Since its inception as Malthurst in 1997, MRH has expanded significantly, acquiring the operations of Kuwait Petroleum GB in 2004, followed by multiple acquisitions from established brands such as Texaco, BP, and Esso.

Over the years, MRH has notably increased its site numbers, market share, and EBITDA. This growth has been primarily fueled by strategic site acquisitions coupled with proactive volume initiatives led by an experienced management team.

Industry Overview in the UK

The UK petrol retail industry has experienced significant transformation over the last decade, largely influenced by shifting consumer preferences and increasing competition. The sector is characterized by a mix of independent operators and major oil brands, each striving to capture market share in a challenging economic landscape. Additionally, the growing emphasis on convenience retailing has led to a rise in petrol stations offering enhanced services, including food and beverage options.

Another critical aspect impacting the industry is advancements in technology. Many operators are investing in IT systems to optimize their operations, improve supply chain management, and enhance customer experience. This digital transformation is becoming essential for petrol stations to remain competitive and meet evolving consumer demands.

Moreover, environmental regulations are shaping the industry as operators face increasing pressure to adopt sustainable practices, including reducing carbon emissions and enhancing energy efficiency. As a result, many companies are exploring alternative fuels and electric vehicle charging infrastructure to cater to changing market dynamics.

The pandemic has also played a role in reshaping consumer behavior, with a notable shift toward online shopping and delivery services. This trend has prompted petrol retailers to diversify their offerings, integrating convenience stores and collaborating with food brands to provide a comprehensive shopping experience for customers.

Rationale Behind the Deal

The recent acquisition of MRH by funds managed by Lonestar represents a strategic move to capitalize on the company’s robust growth trajectory and operational capabilities. Equistone, the previous investor, played a pivotal role in enhancing MRH's value during its investment period by supporting growth initiatives and expanding the brand's market presence.

By acquiring MRH, Lonestar aims to leverage the company’s established infrastructure and reputation within the industry, positioning it for further expansion and development, particularly in the convenience retailing space.

Investor Information

Lonestar is a leading private equity firm known for investing in underperforming but fundamentally sound companies, enabling them to unlock their potential through operational improvements and strategic guidance. With a focus on long-term value creation, Lonestar's investment strategy is grounded in its ability to identify market opportunities and drive transformative growth initiatives.

The firm has a track record of successful investments across various sectors, including consumer, healthcare, and industrial services. Its experience in the petrol retail industry, combined with an experienced management team at MRH, positions the acquisition for future success.

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The acquisition of MRH by Lonestar is regarded as a well-timed and strategically sound investment. Given MRH’s established market presence and growth potential, this deal presents an opportunity for Lonestar to capitalize on ongoing trends within the petrol retail industry.

Moreover, the proactive measures taken by Equistone to enhance MRH’s operational efficiencies and expand its offerings set a strong foundation for future growth. The introduction of the

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