Applegreen founder Bob Etchingham (64) has embarked on his biggest deal yet, a complicated transaction that will see Applegreen become a leading operator of Motorway Service Areas in the UK.

The Irish company is acquiring a 50.2% holding in Welcome Break, which owns 24 MSAs and 29 hotels across 35 locations. To fund the deal and cash consideration of €360m, Applegreen will be tapping shareholders for up to €140m, and tapping lenders for a new €300m debt facility.

The deal is effectively a reverse takeover, and the shares have been suspended until new AIM and ESM admission documents are published in September, and shareholders approve the deal.

Formed in 1959, Welcome Break has 5,000 plus employees operating food and retail brands such as Starbucks, KFC, Burger King, Subway, Waitrose, Harry Ramsden's and WH Smith. Welcome Break also operates 22 Days Inn and seven Ramada hotels across the UK motorway network.

Welcome Break has an established position as one of the three dominant owners and operators of MSA's in the UK and generated revenues of £723.4m and Adjusted EBITDA of £66.4m in the year to January 2018.

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Bob Etchingham commented: "Welcome Break is a fantastic business, it has led the way in providing the very best food and beverage facilities on the UK motorways. We were attracted to Welcome Break because of the strength of its franchise, the excellent management team and the committed staff at each of its 35 locations. We look forward to continuing to grow the Welcome Break business and to offering the c. 85 million customers who visit Welcome Break each year the very best experience on UK motorways."

Photo: Bob Etchingham (right) and Joe Barrett