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Applegreen to acquire US forecourt retail operation

Published 07 July 2017

Applegreen has agreed to acquire the trade and select assets of Bob Brandi and Bob Brandi Stores (the "Brandi Group") a forecourt retail operation based in Columbia, South Carolina.

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 EBITDA1 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



Source: Company Press Release