OREANDA-NEWS. Applegreen, a major petrol forecourt retailer in the Republic of Ireland with a significant and growing presence in the United Kingdom, announces that it intends to proceed with an initial public offering that will comprise a placing of Ordinary Shares (the "Placing") with certain institutional and other investors. The Company intends to apply for admission of its Ordinary Shares to trading on AIM and ESM.

Key Highlights

·      Applegreen is the number one motorway service area operator by number of sites in the Republic of Ireland and has a motor fuel market share of c.12% in the Republic of Ireland.

·      As at 31 December 2014, the Group had c.2,200 staff in the Group's aggregate total of 152 sites, which are located in the Republic of Ireland (96 sites), the United Kingdom (54 sites) and in Long Island, United States (2 sites).

·      The Group operates a distinctive retail led business model built around the following key features:

o  "Low Fuel Prices Always" price promise

o  "Better Value Always" in shop

o  High quality food and beverage offering

·      The Group aims to provide a premium food and hot beverage offering in all its sites which in a number of locations is delivered through both Applegreen's own food brands of aCaf? and Bakewell and international brands such as Subway, Costa Coffee, Burger King and more recently Greggs, Chopstix and Lavazza.

·      In the year to 31 December 2014, the Group had revenue of €937.3 million and Adjusted EBITDA of €22.8 million.

·      The Directors believe that the Group is well positioned to take advantage of growth opportunities. In particular, Applegreen:

-     has demonstrated a track record of high growth in challenging consumer markets. The Group delivered compound annual growth rates of 19 per cent. in EBITDA and 24 per cent. in revenue over the last four financial years, encompassing a period of significant recession, particularly in the Republic of Ireland;

-     has developed a brand and a consumer offer that is compelling, profitable and highly cash generative. The Group's cash conversion for the last three financial years has been greater than 100 per cent. of its EBITDA;

-     is skilled at identifying opportunities in a fragmented market. The Group has a disciplined investment and execution regime;

-     can continue to exploit high growth/high margin convenience lines to generate superior returns into the future. The Group targets a ROCE of over 20 per cent. and achieved a ROCE of 36.6 per cent. and 35.2 per cent. in FY2013 and FY2014 respectively; and

-     has a scalable model which can be replicated in the markets in which it operates.

·      Applegreen has won a number of industry awards recognising the strength of its brand and proposition. These include the NACS (Association for Convenience and Fuel Retailing) International Convenience Retailer of the Year award in 2010 and the Retail Excellence Ireland National Store of the Year Award in 2014.

·      The Group's senior management team is highly experienced in the petrol, retail, food and beverage markets and has a strong track record of making acquisitions and growing site numbers.

·      Applegreen has an experienced Board which includes the recent appointments of Daniel Kitchen as non-executive Chairman and Howard Millar as non-executive director, both of whom have significant capital markets experience.

·      Applegreen's growth strategy is focused on acquiring and developing new sites in the markets in which it operates and upgrading and rebranding its existing sites.

Bob Etchingham, CEO of Applegreen, said:

"We are delighted to announce our intention to float, which will provide an important platform to pursue our long term growth strategy. We believe there are significant opportunities for expansion across the Republic of Ireland and the UK.

Applegreen is a leading retail petrol forecourt operator, with a proven track record of significant growth through the recession and has built a strong brand and consumer offer that is compelling, profitable and highly cash generative.

The Group is well positioned to benefit from recovering economic growth and increased disposable income in the Republic of Ireland and the UK, as well as favourable market trends as the oil majors exit the forecourt market.

The intended IPO will enable us to execute on our growth strategy and further expand and rebrand our portfolio of sites. I am enthusiastic about our future, and look forward to the next stage of our growth as a listed company."

Daniel Kitchen, Independent Non-Executive Chairman of Applegreen, said:

"I am delighted to join the board of Applegreen as Chairman. I have been hugely impressed with the ambition and expertise of the senior management team, who have grown the business significantly during tough economic conditions, positioning the Group for further strong growth. "

 Details of the Placing

·      The Placing will comprise an offer of new and existing Ordinary Shares to certain institutional and other investors in the Republic of Ireland, the United Kingdom and elsewhere.

·      The Company expects to raise gross primary proceeds of approximately €70m through the Placing.

·      The Placing will also include a partial sale of Ordinary Shares held by an entity directly controlled by Bob Etchingham and Joe Barrett, and in addition by a member of the Group's senior management team (the "Selling Shareholders"). Immediately following Admission, the Company expects to have a free-float of at least 25% of the Company's issued share capital. Full details of the Placing will be set out in the Admission Document.

·      Net proceeds for the Company under the Placing are intended to be used primarily to:

o  Upgrade and rebrand up to 70 sites across the Group's existing network of sites in Ireland & Great Britain ("GB");

o  Accelerate expansion; the Group is currently expanding its petrol filling station estate in Ireland and GB by c.20 sites per annum. The Group plans to accelerate this expansion in Ireland and GB both by number of sites and by geography;

o  Develop new Service Area Sites in Ireland and GB; and

o  Take advantage of other opportunities that may arise including building a platform for growth in the US and opportunistic acquisitions of portfolios of sites that may become available

·      It is expected that Admission will take place in the second half of June 2015.

In relation to the Placing and Admission, Goodbody Stockbrokers is acting as ESM Adviser, Joint Bookrunner and Joint Broker. Shore Capital & Corporate Limited is acting as Nominated Adviser to the Company, and Shore Capital Stockbrokers Limited (together with Shore Capital & Corporate Limited being "Shore Capital") is acting as Joint Bookrunner and Joint Broker in relation to the Placing and Admission.