Forecourt retailer Applegreen has agreed a £21m deal with the Carsley Group to buy six service areas and one petrol filling station in the United Kingdom.

The service area sites are predominantly located on the major arterial route of the A1 road, which runs from London to Edinburgh.

The deal, which is to be funded by existing company resources, is expected to be completed before the end of this year.

Applegreen CEO Bob Etchingham said the deal "will accelerate our strategy to establish a major service area presence in the UK market, complementing our strong position in Ireland and growing footprint in the United States".

Last month, in its first major US acquisition, the company said had agreed a deal to buy the trade and some assets of the Brandi group - a forecourt retail operation in South Carolina.

In an investor note on the acquisition, Goodbody said: "The sites being acquired are located on the southern section of the A1, which will see traffic densities significantly higher compared to the existing sites in Ireland.

"Importantly, it accelerates the Group’s stated strategy to expand its service area estate in the UK, providing it with a network of large and strategically important sites in the region.

"Over time we would expect the sites to be rebranded to Applegreen (currently operating as BP), which would further help develop the brand recognition in the UK."