BP buys TravelCenters of America truck stop chain

February 16, 2023

Chuck Robinson

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TravelCenters of America, the huge U.S. chain that operates TA, TA Express and Petro truck stop, is becoming part of BP Products North America.

BP Products North America Inc. is a wholly-owned indirect subsidiary of London-based BP PLC.

BP announced Feb. 16 that it was purchasing TravelCenters of America. The acquisition, which is subject to regulatory and TravelCenters of America shareholder approval, will be for $1.3 billion in cash.

The deal gives BP a network of about 280 travel centers in 44 states that are strategically located on major highways across the U.S. TA and Petro travel centers average around 25 acres in area and offer a full range of facilities for vehicles and fleet trucks, including more than 600 full-service and quick service restaurants, as well as truck maintenance and repair services.

BP said in a news release that it expects the deal to pay off big and quickly.

The purchase almost doubles BP’s global convenience gross margin, the conglomerate reported. Around 70% of TA’s total gross margin is generated by its convenience services business.

There will be an immediate boost to BP’s earnings before interest, taxes, depreciation and amortization, the company reported. It expects those earnings to grow to $800 million by 2025, it said.

The purchase is expected to deliver over 15% returns to BP and be accretive to free cash flow per share from 2024.

Alternative fuel expansion

BP also plans to expand and develop options for electric vehicle charging, biofuels, renewable natural gas and, later, hydrogen, both for passenger vehicles and fleets, the company said in its announcement.

“This deal will grow our convenience and mobility footprint across the U.S. and grow earnings with attractive returns” Bernard Looney, BP CEO, said in the announcement. “Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination.”

BP and TravelCenters of America

BP PLC, formerly British Petroleum Co. PLC, is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and extraction, refining, distribution and marketing, power generation, and trading. The company’s origins date back to 1908, when it was founded as the Anglo-Persian Oil Co. It became British Petroleum in 1954. The name was shortened to BP PLC in 2001.

Westlake, Ohio-based TravelCenters of America dates back to 1972, when it was founded as Truckstops of America. Standard Oil owned the company from 1984 to 1993, when BP acquired Standard Oil and sold TravelCenters of America. Petro Stopping Centers joined TravelCenters of America in 2007. Here is a company timeline.

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