Applegreen, an Irish on-highway services retailer, has acquired a 40% holding in the company that operates 23 fuel and retail services plazas along Connecticut’s highways.
Applegreen joined in a consortium with IST3 Investment Foundation and TD Greystone Asset Management to buy JLIF Holdings U.S. Inc. and it’s fully owned subsidiary Project Services LLC, which operates the Connecticut Service Plazas along I-95, I-395 and Route 15.
Applegreen will pay approximately $37.6 million, excluding transaction fees, to acquire its 40% consortium interest, and it has entered into a call option agreement that, if exercised, would increase its interest in Connecticut Service Plazas to 60% and take majority control. Applegreen owns 121 sites in the U.S., along with 158 sites in the U.K. and 193 in Ireland.
The acquisition is subject to approval from Connecticut Department of Transportation. Approximately 91% of revenue generated by the Connecticut-based locations is generated by long-term anchor tenants including McDonalds, Dunkin’ Donuts, Subway and Alliance Energy, with the remainder coming from their Mobil fuel stations.
“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 Northeast and positioning the company for further growth in this key strategic market,” Applegreen CEO Bob Etchingham said.