John Laing Infra buys US highway services co for £72m

John Laing Infrastructure Fund said it had made a deal to buy US highway service area operator Project Service for £72m.

Project Service runs 23 highway service areas in the state of Connecticut, between New York and Boston JLIF said. It has bought the interest from Carlyle Infrastructure Service Plazas, an affiliate of The Carlyle Group, Subway sandwich owner Doctor's Associates and Subcon, a major Subway franchisee and developer.

The equity value of the deal will be funded using JLIF's multi-currency revolving credit facility. JLIF expects the acquisition to complete in the coming weeks subject to the satisfaction of the conditions as agreed between the parties.

The project involves the operation and maintenance of 23 highway service areas along Interstate 95, Interstate 395 and Route 15, under a 35-year exclusive concession signed in 2009 with the State of Connecticut acting through the Connecticut Department of Transport, JLIF said.

The operator is the exclusive provider of Connecticut's on-highway fuel and food facilities along one of the main artery routes between New York and Boston,” it added.

JLIF said there were long term tenant agreements in place, ranging from 15 to 35 years) with major food and fuel providers. including four key anchor tenants including McDonalds, Dunkin' Donuts, Subway Restaurants and Alliance Energy.

“The majority of the revenues from the concession are generated from these anchor tenants. Further, as part of the concession agreements, the operator pays the Connecticut Department of Transport a share of the revenues over the life of the concession which ensures strong public-sector alignment,” JLIF said.