Applegreen has struck a deal to acquire a 40% holding in 23 service stations in Connecticut, in the US.
The company is part of a consortium that has agreed to takeover CT Service Plazas, the owner of the sites, which are located on three high-traffic routes that are the main interstate routes between New York City and Boston, Massachusetts.
The 23 service plazas benefit from exclusive rights along the I‐95, I‐395 and Route 15 highways in the State of Connecticut, granted under a long‐term concession agreement with the Connecticut Department of Transportation.
Applegreen will pay approximately $37.6m (excluding transaction fees), to acquire its 40% stake, and has an option after five years to increase its holding to 60%.
The plazas offer essential services including fuel, quick‐service food and beverage, retail, restroom and other facilities, operating 24 hours a day and 7 days a week. Approximately 91% of revenue generated by CT Service Plazas is from long‐term anchor tenants including McDonald’s, Dunkin’ Donuts, Subway and Alliance Energy.
Chief executive 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 transaction is subject to Connecticut Department of Transportation approval and is expected to complete in the third quarter of this year.