An agreement has been reached by Applegreen to acquire the trade and certain assets of Bob Brandi Inc. and Bob Brandi Stores Inc. (the "Brandi Group")
Applegreen will acquire the trade and certain assets of the Brandi Group, as per the terms of the agreement, for an amount of US$5.4m. A leading U.S institutional real estate investor will acquire for US$70.1m, certain property assets of the business. Applegreen will enter into a long term agreement with the same real estate investor to lease the property assets, at completion of the Transaction, subject to a number of conditions and, pending satisfaction of those conditions. The transaction is expected to complete in Q4 2017.
Existing resources will fund the consideration of US$5.4m. "We are delighted to announce our first major acquisition in the US which represents a significant milestone for our business. We consider the Brandi Group to be an excellent fit for our business given the attraction and convenience of its locations centered in the city of Columbia together with the significant component of food-to-go offers that exists within the estate. We believe that this acquisition represents an opportunity to establish a significant presence in this market while also providing the potential for us to leverage our retail experience in this sector to enhance the current offering. It also represents an ideal platform from which to further pursue our strategy for growth along the East Coast of the US," said Bob Etchingham, Chief Executive. PWKD10072017