Blackstone Infrastructure Partners Announces a Recommended Offer for Applegreen plc

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– Recommended offer price of €5.75 per share represents a 48.2 per cent premium to the closing price of €3.88 per share on 9 December 2020 (being the last business day prior to the publication of the Possible Offer Announcement on 10 December 2020).

London – Blackstone Infrastructure Partners today announced a recommended offer for Applegreen plc.

The recommended offer is made by Blackstone at a price of €5.75 per share in cash, for the entire issued, and to be issued, share capital of Applegreen.

The recommended offer values the entire issued and to be issued share capital of Applegreen at approximately €718.1 million^{[ 1 ]}, representing a 48.2 per cent premium to the closing price of €3.88 per share on 9 December 2020 (being the last business day prior to the publication of the Possible Offer Announcement on 10 December 2020) and a 63.7 per cent premium to the 3-month VWAP^[2] ended 9 December 2020.

Background to the acquisition

Under the leadership of co-founders Robert Etchingham and Joseph Barrett, Applegreen has since its IPO in 2015 expanded through a combination of organic growth and a number of acquisitions including the purchase of a majority stake in Welcome Break in 2018 and expansion into the US. The co-founders are expected to retain a significant stake in the business upon completion of the transaction.

The next stage of Applegreen’s development will depend on its continued ability to fund growth investments including site upgrades, development of electric vehicle infrastructure and investment in new sites particularly in the US through projects such as the New York State Thruway project. The transaction is expected to significantly increase the capital available to Applegreen to finance future developments. Blackstone’s long-dated infrastructure funds are well suited to help support Applegreen’s future growth.

Sebastien Sherman, Senior Managing Director, Blackstone Infrastructure Partners, said:
“We are honoured to partner with Applegreen’s visionary Founders, Bob Etchingham and Joe Barrett, to continue to build Applegreen’s industry-leading portfolio of roadside retail outlets in Europe and the United States. We look forward to supporting Applegreen as its team continues to innovate and expand internationally.”

Daniel Kitchen, Chairman of Applegreen, said:

“Over recent years, Applegreen has expanded operations to develop an enviable position as a leading roadside convenience retailer across Ireland, the UK and the US, combining a unique customer proposition with an effective business model to increase resilient non-fuel revenues.”

Robert Etchingham and Joseph Barrett, CEO AND COO of Applegreen respectively, said:

“Over the last 28 years Applegreen has gone through many changes to become a major roadside retail business today with 559 locations across Ireland, the UK and the United States. This growth is a testament to the employees and the strong culture within Applegreen that have enabled us to identify and pursue attractive investment opportunities. Looking forward, Applegreen will transition its business through capital intensive highway projects and electric vehicle charging infrastructure to meet the needs of an evolving consumer. We believe private ownership is the appropriate structure for this transition and that in Blackstone Infrastructure Partners, with its long-term focus and its significant ability to accelerate our growth, we have found the right partner for the next stage of the Applegreen journey.”

It is intended that the acquisition will be implemented by way of a court sanctioned scheme of arrangement under Chapter 1 of Part 9 of the Companies Act 2014. It is anticipated that the scheme will, subject to obtaining the necessary regulatory approvals, be declared effective in March 2021.
It is expected Applegreen’s shares will de-list from the London Stock Exchange and Euronext Dublin upon completion of the transaction.

This press release should be read in conjunction with the Rule 2.5 announcement available on Applegreen’s website at www.applegreenstores.com and www.causeway-offer.com.

Enquiries:
Blackstone
Paula Chirhart
T: +1-347-463-5453
E: [email protected]

Ramesh Chhabra
T: +44 7810 501027
E: [email protected]

 About Blackstone

Blackstone is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. Blackstone do this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s $584 billion in assets under management as of 30 September 2020 include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com.

About Blackstone Infrastructure Partners

Blackstone Infrastructure is an active investor across energy, transportation, communications and water and waste infrastructure sectors. Blackstone Infrastructure seeks to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Blackstone Infrastructure’s approach to infrastructure investing is one that puts a focus on responsible stewardship and stakeholder engagement to create value not just for our investors but also for the communities we serve.