Applegreen acquires seven UK sites for £21m
Service areas and petrol station on the A1 motorway acquired from the Carsley group
Applegreen’s acquisition is being funded through existing company resources. Photograph: Cyril Byrne
Irish forecourt retailer Applegreen has acquired a network of seven sites in the UK for £21 million (€23.4 million).
The six service areas and one petrol station, predominantly located on the A1, have been acquired from the Carsley Group.
The transaction, which is expected to complete in the fourth quarter of this year, will be funded from existing company resources.
“The assets being acquired provide a set of large and strategically important sites that can accelerate Applegreen’s growth in this key marketplace,” said Bob Etchingham, Applegreen chief executive.
At the beginning of July the company acquired the trade and certain assets of the US-based Bob Brandi group for $5.4 million (€4.56 million). The acquisition of 42 sites in South Carolina is expected to be completed in the fourth quarter of this year.
When the US acquisition was announced Mr Etchingham said the company was looking ahead to a point when growth opportunities would plateau in Ireland. He anticipates that could happen in the next two to four years.
“This is another attractive acquisition for Applegreen,” said Goodbody analysts Jason Molins and Patrick Higgins.
“The acquisition provides Applegreen with a good stepping stone into the service area market . . . the business remains well positioned to continue its roll-out strategy,” the analysts added.