Morrisons has completed the sale of its forecourts business to specialist operator Motor Fuel Group (MFG).
The £2.5bn deal includes 337 of the supermarket’s petrol stations and 400 associated sites in the grocer’s car parks.
The transaction forms part of a “new strategic partnership” between Morrisons and MFG, which is also owned by private equity firm CD&R.
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The supermarket has taken a 20% stake in MFG and agreed commercial and supply deals, which Morrisons said underpins its convenience growth strategy.
Morrisons will use the cash proceeds from the sale – worth £1.8bn after fees and expenses – to “strengthen its capital structure and repay certain of its debt obligations”.
The supermarket said: “While the company may elect to apply up to £1bn proceeds towards reinvestment, it intends to explore if there are efficient opportunities to apply proceeds to debt reduction.”
A ‘Facility A’ loan under Morrisons’ senior facilities agreement will be repaid “in its entirety without delay”.
The transaction follows a similar deal made by Asda, which bought fellow Issa brothers-owned business EG Group’s UK and Ireland forecourt business last September.
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