Applegreen buys stake in US-based services area operator
Applegreen is expanding its presence in the United States with a 40pc stake in 23 on-highway services plazas in Connecticut.
The Irish company is spending around $37.6m (€33.5m) on the acquisition of CT Service Plazas, which will be funded by its exiting resources.
The group recently acquired the leaseholds on forecourt sites in Michigan, Minnesota and Wisconsin.
In addition, it operates service stations in Florida, South Carolina, Massachusetts and Long Island, having first entered the US market in 2014.
In this latest acquisition, Applegreen has the option after five years to increase its interest to 60pc and take majority control.
CEO Bob Etchingham said: "This transaction represents a rare opportunity to acquire a high profile service plaza concession project in one of our core regions in the United States, significantly increasing our market presence in the North East and positioning the company for further growth in this key strategic market."
The service stations benefit from exclusive rights along a number of highways in the State of Connecticut, granted under a long-term concession agreement with the Connecticut Department of Transportation.
Applegreen added that the deal supports its “strategic objective of growth in North America and continues to develop its stated ambition of reducing fuel dependency through the addition of significant food and beverage operations.”