CrossAmerica & Applegreen Ink 59-Store Deal
ALLENTOWN, Pa. — CrossAmerica Partners LP and its Lehigh Gas Wholesale Services Inc. subsidiary signed a purchase agreement to acquire the assets of Applegreen Midwest and Applegreen Florida for $16.9 million.
The deal will terminate the existing lease agreements between the two companies at 59 locations and transfer their operations, plus all inventory, to CrossAmerica and Lehigh Gas. However, according to SEC filings, an option to extend the remaining leases of Applegreen's Midwest and Florida operations to 2049 and 2048, respectively, is part of the agreement, along with all renewal options.
[Read more: CrossAmerica Sees Lift in Fuel Volume From Integration of Community Service Stations]
The stores to be acquired are located in Michigan, Minnesota, Wisconsin and Florida.
The two Applegreen subsidiaries are owned by their Ireland-based parent company, Applegreen Limited, a petrol forecourt retailer with operations in the Republic of Ireland and the United Kingdom, as well as the United States. Founded in 1992, the company employs more than 10,700 staff members across 472 locations.
In addition to the 59 sites that will be acquired by CrossAmerica, Applegreen operates stores across the Midwest and Northeast United States.
CrossAmerica and Applegreen previously reached a deal in which Applegreen would operate 46 company-operated retail stores in the upper Midwest, along with a master fuel supply and master lease agreement for an additional 43 locations in Florida, in 2019.
The current deal includes standard legal conditions and is expected to close in the first half of 2024. Citizens Bank is acting as both the administrative and collateral agent on the transaction.
Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites. The company previously acquired large numbers of assets from Community Service Stations in 2022 and from 7-Eleven Inc. in 2021.