Fuel and forecourt retailer Applegreen is to acquire a majority holding in the UK motorway service area group Welcome Break for over €360 million.

The acquisition broadens Applegreen's exposure to operations other than fuel retailing.

Welcome Break's portfolio consists of 24 motorway service areas, two trunk road service areas and 29 hotels across 35 locations in the United Kingdom.

Applegreen says the transaction will be financed by a new debt facility of €300 million and a proposed equity fundraising of over €100 million.

"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," Bob Etchingham, CEO of Applegreen said.

"We look forward to continuing to grow the Welcome Break business and to offering the 85 million customers who visit Welcome Break each year the very best experience on UK motorways."