Applegreen acquires interest in US forecourt operation
Applegreen has acquired a leasehold interest in a number of forecourt retail assets of Lehigh Gas Wholesale, CrossAmerica Partners and their affiliates in the United States.
Applegreen will not have to pay any upfront costs, and the transaction is expected to generate earnings growth for the company this year.
Any additional capital investment in the portfolio will be funded from the company’s existing resources.
As part of the deal, Applegreen will enter an initial 10 year agreement to lease the property assets and commence trade at the service stations.
The assets are made up of 46 sites, with a “significant number” of these concentrated in and close to the greater Minneapolis and St Paul metropolitan area.
All of these sites are petrol filling stations that currently include convenience store operations.
Applegreen CEO Bob Etchingham said: "Following significant acquisitions on the east coast of the USA in the past two years, we are delighted to announce our first major acquisition in the mid-west.”
“We believe that this acquisition represents an opportunity to establish a significant presence in another market in the USA while leveraging our existing management and operational capabilities."
The transaction is expected to be completed in the second half of this year.