TravelCenters of America, widely known to truckers as TA, Petro Stopping Centers, and TA Express, has a new owner this morning as BP America has plans to acquire them. The truck stop giant agreed to a sale price of $1.3 billion, or $86 dollars a share, which would be an 84% premium of Feb. 15’s closing price of $49.44.
TA’s CEO Jonathan Pertchik made a prepared statement announcing the sale, “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. We have improved our core travel center business, expanded our network, launched TA 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.”
Subject to shareholder and regulatory approval, the parties are targeting closing the acquisition by mid-year 2023. Some significant shareholders, Service Properties Trust and The RMR Group, have already vouched for the sale.
TA has 281 locations in 44 states and employs about 18,000 people. Most sites are approximately 25 acres, including truck service shops, fast food and some dine-in restaurants, and other hospitality services.
BP’s chairman and president, Dave Lawler, made this statement about the purchase: “Subject to approvals, we look forward to welcoming the TA team to BP. TA’s amazing nationwide network of on-highway locations combined with BP’s more than 8,000 off-highway locations have the potential to offer travelers and professional drivers a seamless experience for decades to come.”
According to the BP press release, this transaction brings growth opportunities for four of its five transition growth engines, including convenience, EV charging, biofuels/ renewable natural gas (RNG), and later, hydrogen. BP believes the deal will turn profitable by 2024.
This ownership sale brings TA off the stock market, making all major truck stop brands privately owned. Berkshire Hathaway does own 38.6% of Pilot/FlyingJ, but those are not publicly available shares.
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