Irish filling station group continues to pump into the US market with new acquisition
The Irish filling-station group Applegreen has purchased the trade and certain assets of Bob Brandi and Bob Brandi Stores, a forecourt retail operation based in Columbia, South Carolina.
Applegreen will pay US$5.4m (€4.76m) upfront for the business, while the total consideration will be worth $70.1m.
A US real estate investor will acquire certain property assets of the business for US$70.1m, after which Applegreen will enter into an agreement with the real estate investor to lease the property assets.
The Brandi business consists of 42 sites located in or close to the city of Columbia, 34 of which are petrol filling stations which incorporate 11 Burger King restaurants, and a number of other food offers including Subway and Blimpie.
In addition, the Brandi business operates eight stand-alone Burger King sites.
The Brandi group currently generates an adjusted earnings before interest, taxation, depreciation, and amortization of approximately $3m.
Applegreen will fund the deal from its exiting resources.
The deal is expected to be completed in the latter part of 2017, subject to a number of conditions.
Describing the move as a "significant milestone", Applegreen chief executive Bob Etchingham said that he considered the group an "excellent fit" for Applegreen given the attraction and convenience of its locations.
"We believe that this acquisition represents an ideal platform from which to further pursue our strategy for growth along the East Coast of the US," Mr Etchingham said.