StockMarketWire.com - Applegreen said it had conditionally acquired a 40% stake in 23 on-highway services plazas in Connecticut, US for about $37.6m.

The service plaza business in the US was located on three heavily trafficked routes, which were the main Interstate routes between New York City and Boston Massachusetts, the company said.

'The transaction supports Applegreen's strategic objective of growth in North America and continues to develop its stated ambition of reducing fuel dependency through the addition of significant food and beverage operations,' the company said.

Applegreen said it had entered into a call option agreement with TD Greystone, exercisable at five years after completion of the transaction that would enable the company to increase its interest in the service plazas to 60% and take majority control, if exercised.

'The transaction is currently expected to be slightly dilutive to earnings in the Company's year ended 31 December 2019 due to the additional debt service costs incurred,' the company added.

The transaction, subject to Connecticut Department of Transportation approval and, pending satisfaction of this condition, was expected to complete in Q3 2019.



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