Applegreen announces €5M deal for 42 US sites
Applegreen has taken another bold step into the US market, acquiring a forecourt retail operation in South Carolina.
The Irish forecourt retailer said it reached agreement to acquire the Brandi Group, based in the city of Columbia, for €4.7 million ($5.4 million).
The deal will also see Applegreen enter a long-term lease on the company’s property assets, worth €61.5 million ($70.1 million), which have been acquired by a leading US real estate investor.
The deal is expected to be completed in the last quarter of 2017.
The Bandi group comprises of 42 sites in or close to the city of Columbia, the state capital of South Carolina. Some 34 of the sites are petrol filling stations, incorporating 11 Burger King restaurants and a number of other food offers including Subway and Blimpie.
The business also operates eight stand-alone Burger King sites.
Applegreen said it would be working with the existing management team for the first 12 months to ensure an orderly transition.
Chief Executive Bob Etchingham said: “We are delighted to announce our first major acquisition in the US which represents a significant milestone for our business.
“We consider the Brandi Group to be an excellent fit for our business given the attraction and convenience of its locations centred in the city of Columbia together with the significant component of food-to-go offers that exists within the estate.
“We believe that this acquisition represents an opportunity to establish a significant presence in this market while also providing the potential for us to leverage our retail experience in this sector to enhance the current offering.
“It also represents an ideal platform from which to further pursue our strategy for growth along the East Coast of the US.”
The news comes within days of Applegreen announcing it has received approval from the Competition and Consumer Protection Commission to acquire a 50% share in the Joint Fuels Terminal in Dublin port from the Topaz Energy Group for €15.7 million.