Dive Brief:
- BP will purchase TravelCenters of America for $1.3 billion, pending shareholder approval, according to a Thursday press release. There is no timeline on when approval may come, but two major shareholders already back the deal.
- An unsolicited offer for the 281-location chain of travel centers across 44 states led to competitive bidding, resulting in a final price that is worth an 84% premium over the company’s average stock price in the last month.
- TravelCenters of America embarked on a turnaround after hiring CEO Jon Pertchik in 2019. The improved operations sparked interest in a buyout from other companies, according to the release.
Dive Insight:
After selling about 700 of its company-operated c-stores in 2007, BP has quietly crept back into the retail landscape over the past few years.
The fuel giant took full ownership of Midwest chain Thornton’s in August 2021, including about 200 c-stores in Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida. Earlier this summer, BP brought its Ampm c-store brand to the Bronx, New York City — its first store on the East Coast, with three additional locations scheduled for that area.
Acquiring Westlake, Ohio-based TravelCenters of America is undoubtedly a major milestone in BP’s re-entry into fully owned and operated c-stores, once again making the fuel giant a major player in the space.
The acquisition is the result of “the successful implementation” of TA’s turnaround and strategic plans, Pertchik said in the announcement.
“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,” he said.
Upon receiving interest that other companies wanted to make an acquisition, TA’s board of directors hired financial and legal advisors as part of a formal process to consider a potential sale, which eventually led to the aforementioned bidding and BP purchase, according to the announcement. The transaction was unanimously approved by the TA board of directors.
