Arjun and Fengate consortium acquire ONroute Services Centres
Arjun Infrastructure Partners (AIP) and Fengate Asset Management have acquired a Canadian service station from KD Infrastructure and HMSHost Corporation, along with certain of their affiliates.
The consortium has paid an undisclosed sum for ONroute Services Centres, an operator of a chain of 23 service plazas and rest areas with prime locations along major highways in Ontario.
AIP has taken a majority stake in ONroute on behalf of its Alliance investors.
Founded in 2010, ONroute currently serves more than 40m customers per year and operates under a 50-year concession agreement with the Province of Ontario.
Surinder Toor, a managing partner at AIP, said: “ONroute offers a unique opportunity for our investors to capitalise on AIP’s experience of the motorway service areas sector, developed through our management of Welcome Break, the second largest sector operator in the UK.”
Charles Hazelwood, a partner at AIP, said: “AIP intends to continue building ONroute’s strong offering for the benefit of the Province’s population and AIP is pleased to be joining forces with Fengate, who have extensive experience of managing critical social infrastructure in North America and particularly in Ontario.”
Andrew Cogan, managing director of infrastructure investments, Fengate Asset Management, said: “ONroute is a unique, high-quality transportation infrastructure investment in Ontario that will deliver long-term, stable cash flows to our investors.
”We are very impressed with the quality of ONroute’s people, infrastructure, locations and operations, and this acquisition is an excellent fit with our investment strategy.”