The company that brought popular restaurants such as Chik-Fil-A and Shake Shack to New Jersey Turnpike and Garden State Parkway service areas is being sold to a consortium of several companies this summer.
HMS Host, which operates the 20 Turnpike and Parkway areas, is selling its American toll road business for $375 million to Iris Buyer, LLC, a consortium of Blackstone Infrastructure Partners, an investment firm, and Dublin based Applegreen LTD, which operates highway service areas in Europe and the U.S., and B&J Holdings LTD, according a statement from Autogrill, HMS Host parent company.
Groundwork for that deal was laid in February when Blackstone acquired Applegreen, which runs 161 service areas in the U.S, according to the corporate website. Host operates 60 service areas in the U.S., and also operates concessions in airports, including Newark Liberty.
The sale is expected to be completed this summer, if the necessary governmental approvals and consent from landlords such as the Turnpike Authority, are received.
Turnpike Authority commissioners tabled voting on that consent Tuesday, but under a proposed agreement, Iris Buyer LLC will be expected to honor the 2017 contract where Host agreed to replace the oldest service areas and rehabilitate newer structures on the Turnpike and Parkway.
The agreement was tabled to give the Commissioners time to consider it and to get answers to questions they might have before voting on it, said Tom Feeney, a Turnpike Authority spokesman. The item came together late in the week and was to the agenda Monday afternoon, he said.
Questions to Applegreen corporate offices about what happens to HMS Host employees and if Applegreen has plans to replace any of the existing restaurants also were not immediately replied to.
HMS Host agreed in 2017 to a $250 million plan to replace or rehabilitate 13 service area buildings in exchange for a 25-year franchise to operate service centers on both toll roads. That work is currently underway.
Turnpike Authority officials expect Iris Buyer to uphold that commitment without a change in schedule and to add the Vauxhall and Brookdale South service areas to those to be operated by Iris, under the proposed agreement tabled by commissioners.
Iris Buyer also would be expected to repay the authority a $50 million loan made in March 2020 to help HMS Host continue work on Turnpike and Parkway Service areas. Host cited revenue losses due to coronavirus pandemic travel restrictions. But a union representing HMS host employees in other locations criticized the deal after Host parent company Autogrill spent $35.8 million on stock buybacks.
Turnpike Authority commissioners agreed to the proposal to keep work moving at three service areas, Vince Lombardi and Stockton on the Turnpike and Forked River on the Parkway.
In November, the authority approved another $10 million to be paid to contractors on behalf of HMS Host to cover construction change orders totaling $6.5 million to do work that the state Department of Community Affairs said was necessary to issue temporary certificates of occupancy that will allow new service areas to open.
The consortium will repay the now $50 million the Authority paid to contractors for Host’s share of the costs, plus an additional sum between $300,000 and $450,000, depending on how quickly it makes repayment.
Iris also has to pay $500,000 to cover the authority’s legal and other costs, under the consent agreement.
What effects drivers will see is not known. The service areas reconstructed by HMS Host brought some new popular restaurants to a new building such as Chik-Fil-A in the Thomas Edison service area and Shake Shack to the Monmouth area, which both opened in 2019.
Our journalism needs your support. Please subscribe today to NJ.com.
Larry Higgs may be reached at lhiggs@njadvancemedia.com.
"sold" - Google News
May 26, 2021 at 12:03AM
https://ift.tt/34kjt6d
Company that runs Turnpike, Parkway service areas to be sold for $375M. - NJ.com
"sold" - Google News
https://ift.tt/3d9iyrC
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "Company that runs Turnpike, Parkway service areas to be sold for $375M. - NJ.com"
Post a Comment