WESTLAKE, Ohio—Bp has agreed to acquire TravelCenters of America Inc., the nationwide operator and franchisor of the TA, Petro Stopping Centers and TA Express travel center brands, for roughly 1.3 billion, the companies announced today.
Bp will acquire all of the outstanding shares of TA common stock for $86 per share in cash. The sale price represents an 84% premium to the average trading price of the 30 days ended February 15, 2023, of $46.68. The total equity value is about $1.3 billion.TravelCenters owns a network of about 281 highway sites across 44 states.
“Today’s announcement … is a result of the successful implementation of our turnaround and strategic plans. We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level,” said Jonathan M. Pertchik, the CEO of TA.
The move accelerates bp’s reentry into the retail landscape. In 2021, bp took full ownership of Thorntons, including about 200 c-stores. As Fuels Market News detailed in its fall 2022 cover story, “Return of the Majors?”, bp began its withdrawal from convenience retail in late 2007 as it switched to a franchise network model, but marked a return to direct company-operated retail sites with the Thorntons acquisition.
Bp has five strategic “transition growth engines.” They are convenience, EV charging, bioenergy, renewables and hydrogen.
“This is bp’s strategy in action,” said Bernard Looney, bp CEO. “We are doing exactly what we said we would, leaning into our transition growth engines. This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns. Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination.”
In January, TA announced plans to deploy 1,000 EV chargers across 200 locations. Yesterday, bp announced plans to invest $1 billion in EV charging in the United States by 2030.