Monday 23 October 2017

Applegreen snaps up British service stations in €23m deal

Applegreen
Applegreen
John Mulligan

John Mulligan

Forecourt retailer Applegreen has agreed to pay Carsley Group £21m (€23m) for seven sites in the UK.

The sites, along the A1 between London and the north, include six service areas.

Applegreen CEO Bob Etchingham said the deal will accelerate the company's strategy to establish a major motorway service area presence in the UK market.

"The service area sites we are acquiring are well located on very busy roads with a number situated on the A1 which is a major arterial route," he added.

"The assets being acquired provide a set of large and strategically important sites that can accelerate Applegreen's growth in this key marketplace."

He added: "This acquisition demonstrates our commitment to enhancing our existing estate in the UK and leveraging our expertise in operating high-quality service areas offerings with a strong food-to-go focus for the benefit of our customers."

In July, Applegreen sealed a $75m deal to buy a chain of 34 filling stations in South Carolina from the Brandi Group.

Eleven of the stations include Burger King outlets, while they also have other food offerings, such as Subway. The deal also includes the acquisition of eight stand-alone Burger King sites.

Applegreen is paying $5.4m for the trade and certain assets of Brandi Group, while a US institutional investor will buy property assets of the business for $70.1m.

In the UK, Applegreen is planning a new motorway service area in Yorkshire that will involve an investment by the group of between £40m and £50m (€44m to €55m) and create about 300 jobs.

Applegreen posted adjusted pre-tax profits of €21m last year, an 18.6pc increase on 2015.

Irish Independent

Also in Business