Applegreen Takes Stake in 23 Service Plazas in Connecticut
DUBLIN — Applegreen LC purchased a 40-percent stake in 23 service plazas in Connecticut.
A consortium of companies — including the Dublin-based retailer as well as IST3 Investment Foundation and Greystone Asset Management — entered into a conditional agreement to acquire Project Services LLC, which currently operates the service plazas, as well as its parent holding company, JLIF Holdings, reported The Haven Register.
Upon completion of the deal, Applegreen will hold a 40-percent stake, with IST3 and TD Greystone holding 40 percent and 20 percent, respectively.
Applegreen also entered into a call option agreement with TD Greystone, exercisable at five years after completion of the transaction, that will enable Applegreen to increase its interest in these service plazas to 60 percent and take majority control if exercised.
Highlights of the transaction include:
- The acquisition of a significant equity stake in a well-established and fully redeveloped service plaza business in the United States, located on three heavily trafficked routes which are the main interstate routes between New York and Boston.
- The 23 service plazas benefit from exclusive rights along the I-95, I-395 and Route 15 highways in Connecticut granted under a long-term concession agreement with the Connecticut Department of Transportation.
- The deal supports Applegreen's strategic objective of growth in North America, and continues to develop the company’s ambition of reducing fuel dependency through the addition of significant food and beverage operations.
The service plazas offer fuel, quick-service food and beverages, general merchandise, restrooms and more. The operate 24 hours a day, seven days a week. Approximately 91 percent of the revenue generated by these service plazas is from long-term anchor tenants including McDonalds, Dunkin' Donuts, Subway and Alliance Energy.
"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,” said Bob Etchingham, CEO of Applegreen.
The acquisition is subject to approval from the Connecticut Department of Transportation.
Applegreen's U.S. presence includes approximately 121 stores across Connecticut, Florida, Massachusetts, New Hampshire, New York, Rhode Island, South Carolina and Vermont.