BP in $1.3 billion cash deal to acquire TravelCenters of America

BP is ramping up its expansion into convenience and travel retail. 

BP, a subsidiary of British oil giant BP p.l.c., entered into a deal to acquire TravelCenters of America Inc. (TA) .  The acquisition, subject to regulatory and TA shareholder approval, will be for $1.3 billion in cash.

TA has 281 highway locations in 44 states, principally operating under the TA, Petro Stopping Centers and TA Express brands. The locations, which average around 25 acres, offer a full range of facilities for vehicles and fleet trucks, including more than 600 full-service and quick-service restaurants and travel stores as well as diesel and gasoline fuel, truck maintenance and repair services. Around 70% of the company’s total gross margin is generated by its convenience services business.

In a release, BP said that TA’s strategically-located network of highway sites complements its existing, predominantly off-highway convenience and mobility business, enabling the two companies to offer fleets “a seamless nationwide service.” BP operates around 8,000 off-highway locations.

In August 2022, BP opened the first East Coast location of its ampm convenience store brand, in  New York City, one of four scheduled ampm openings on the East Coast, in a move that supports BP’s strategy to grow its convenience business.  

The company aims to increase the number of convenience sites in its global network from approximately 2,000 today to more than 3,000 by 2030.  BP’s mobility and convenience brands in the U.S. include BP, Amoco, ampm and Thorntons. 

“We are doing exactly what we said we would, leaning into our transition growth engines,” said  Bernard Looney, CEO of BP. “This deal will grow our convenience and mobility footprint across the U.S. and grow earnings with attractive returns.”

TA has been expanding and upgrading its locations. Last month, it announced plans to deploy 1,000 EV chargers across 200 locations.

“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,” stated Jonathan M. Pertchik, CEO of TA. “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.”