Forecourt retailer Applegreen has acquired a leasehold interest in 'certain forecourt retail assets' of Lehigh Gas Wholesale, CrossAmerica Partners and a number of their affiliates, in the US Midwest.
The leasehold interest applies to a total of 46 sites in Michigan, Minnesota and Wisconsin, the company said. A 'significant number' of these sites are located in the greater Minneapolis and St Paul metropolitan area.
10- Year Agreement
Under the terms of the transaction, the value of which was not revealed, Applegreen will enter into an initial 10-year lease agreement and commence trade at the sites in question.
The operations will be managed by Applegreen's current US-based management team, located in the northeastern US, which will be 'supplemented with additional operational and finance personnel', Applegreen said.
Completion of the transaction is subject to competition and regulatory approval, and is expected to be completed in the third quarter of this year.
'Major Acquisition'
"Following significant acquisitions on the east coast of the USA in the past two years, we are delighted to announce our first major acquisition in the mid-west," commented Applegreen chief executive Bob Etchingham.
"We consider this group of sites to be a good fit for our business given the convenience of its locations centred in the large metropolitan area of Minneapolis-St. Paul and we are happy to expand on our existing relationship with CAP in the USA. We believe that this acquisition represents an opportunity to establish a significant presence in another market in the USA while leveraging our existing management and operational capabilities."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
