Dublin-based Applegreen will acquire a leasehold interest in certain convenience-store assets of Lehigh Gas Wholesale LLC, CrossAmerica Partners LP (CAP) and its affiliates in Michigan, Minnesota and Wisconsin.
The assets include 46 gas stations with convenience stores primarily in the Minneapolis and St. Paul metropolitan areas.
Established in 1992, Applegreen is a c-store food and beverage retailer and operator of gas stations, convenience stores and motorway service areas. It has 472 sites, including 193 in Ireland, 158 in the U.K. and now 121 in the U.S.
Applegreen will enter into an initial 10-year lease agreement with the lessor to lease the property assets and begin trade at the stations. No up-front cost will be paid by Applegreen, which said that the transaction would boost earnings this year. It added that the agreement included extension options “negotiated in order to allow for a low-risk expansion of Applegreen’s presence in the USA.”
Applegreen’s existing U.S. management team will manage the operation.
“We consider this group of sites to be a good fit for our business given the convenience of its locations centered on the large metropolitan area of Minneapolis-St. Paul, and we are happy to expand on our existing relationship with CAP in the USA,” said Applegreen Chief Executive Bob Etchingham.
By the end of last year, the company had 472 sites across its estate. Some 193 of those were in the Republic, 158 in the U.K. with an additional 121 in the U.S.
The transaction is expected to complete by the third quarter of this year.