Done Deal: BP completes $1.3 billion acquisition of TravelCenters of America
BP Products North America Inc. has closed a blockbuster deal that extends its convenience store footprint.
BP, a subsidiary of British oil giant BP p.l.c., said it has completed its $1.3 billion acquisition of TravelCenters of America Inc. (TA). The deal provides BP with a network of roughly 280 travel centers strategically located on major highways across the United States. (TA locations operate primarily under the TA, Petro Stopping Centers and TA Express banners.) BP said that TA’s highway sites complements its existing, predominantly off-highway convenience and mobility business in the U.S., enabling the two companies to offer fleets and consumers “a seamless nationwide service.”
"We are thrilled to welcome the TravelCenters of America team to bp and give a turbo-boost to our convenience and mobility business in the U.S.,” said Emma Delaney, executive VP customers & products, BP. “Combining TA's sites on U.S. highways with our brilliant retail network off the highway immediately expands our offer and doubles our global convenience gross margin.”
TA 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. (About 70% of the company’s total gross margin is generated by its convenience services business.).
In January, TA announced plans to install electric vehicle charging stations at 200 locations.
BP said the transaction will give its options to expand and continue to develop convenience, one of five strategic transition growth engines that the company intends to grow rapidly through this decade.
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.
With the close of the acquisition, TravelCenters of America common shares have been converted into the right to receive $86 per share.