Applegreen PLC Acquisition of US forecourt operation (2340K)
06 July 2017 - 4:00PM
UK Regulatory
TIDMAPGN
RNS Number : 2340K
Applegreen PLC
06 July 2017
This announcement contains inside information within the meaning
of the EU Market Abuse Regulation 596/2014
Applegreen plc
("Applegreen" or the "Company")
Acquisition of US forecourt operation
Dublin, London, 6 July 2017: Applegreen is pleased to announce
that it has reached agreement to acquire the trade and certain
assets of Bob Brandi Inc. and Bob Brandi Stores Inc. (the "Brandi
Group") a forecourt retail operation based in Columbia, South
Carolina (the "Transaction")
Under the terms of the Transaction, Applegreen will acquire the
trade and certain assets (the "Business") of the Brandi Group for a
consideration of US$5.4m (inclusive of working capital) and a
leading U.S institutional real estate investor will acquire certain
property assets of the business for US$70.1m. At completion of the
Transaction, Applegreen will enter into a long term agreement with
the same real estate investor to lease the property assets.
Completion of the Transaction is subject to a number of conditions
and, pending satisfaction of those conditions, is expected to
complete in Q4 2017.
The Business comprises a total of 42 sites located in or close
to the city of Columbia, the state capital of South Carolina. 34 of
these sites are petrol filling stations which incorporate 11 Burger
King restaurants and a number of other food offers including Subway
and Blimpie. In addition, the Business operates eight stand-alone
Burger King sites.
The Business currently generates an adjusted EBITDA(1) of c.$3m
and is expected to be earnings accretive in 2018. The consideration
of US$5.4m is being funded from existing resources.
The current owner has committed to working with the existing
management team for the first 12 months to ensure an orderly
transition of operations to Applegreen. The Company will supplement
those existing resources with additional Applegreen finance and
operational personnel to ensure a successful integration of the
Business.
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."
(1) adjusted to reflect the new cost base
For further enquiries, please contact:
Applegreen
Bob Etchingham, CEO / Niall Dolan, CFO +353 (0) 1 512 4800
Drury Porter Novelli (Irish media):
Paddy Hughes +353 (0) 1 260 5000
Goodbody
Joe Gill +353 (0) 1 667 0420
Siobhan Wall
Shore Capital
Stephane Auton +44 (0) 20 7408 4090
Patrick Castle
This information is provided by RNS
The company news service from the London Stock Exchange
END
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