BP purchasing TravelCenters of America for $1.3 billion
- BP has entered an agreement to acquire TravelCenters of America (TA).
- TA operates and franchises the TA, Petro Stopping Centers and the TA Express travel centers brands.
- BP will purchase the company for $86 per share, an 84% premium compared to the average trading price during the last 30 days.
BP has entered an agreement to purchase TravelCenters of America (TA) for $86 per share, valuing the c-store chain at about $1.3 billion.
In a Feb. 16 news release, TA, which operates and franchises the TA, Petro Stopping Centers and TA Express travel center brands, said the British multinational oil and gas company would purchase the company at an 84% premium compared to its average trading price during the last month.
“Today’s announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans,” said Jon Pertchik, TA’s CEO, in the release. “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.”
The release said BP’s interest in purchasing TA was unsolicited and followed the company’s turnaround plan, which resulted in several quarters of improved performance, according to the release. The Westlake, Ohio-based c-store and gas station chain was founded in 1972 and has more than 280 locations across 44 states.
TA signed 30 new franchise agreements last year, opening three new franchised sites in 2022 with plans to open 20 franchise locations this year, the company said in a January release. TA also last year outlined more strategic changes, including a greater focus on restaurants. During TA’s third-quarter earnings call in November, Pertchik said the company planned to add more IHOP locations and introduce a new proprietary restaurant brand.
BP in its own Feb. 16 release said the acquisition would complement its existing off-highway convenience and mobility business, increasing BP’s global scale and reach. Having TA in its portfolio will also provide options as it seeks to expand into electric vehicle (EV) charging stations, biofuels, renewable natural gas (RNG) and hydrogen fuel, BP said.