BP Products North America Inc. today completed its $1.3 billion acquisition of TravelCenters of America Inc. The acquisition marks "a milestone for the U.S. in the growth of bp's strategic convenience and mobility business," according to bp.
The transaction:
- Adds a network of about 280 travel centers, located on major highways across United States
- Almost doubles bp's global convenience gross margin
- Brings growth opportunities for four of bp's five transition growth engines, including EV charging via bp pulse, convenience, biofuels/ renewable natural gas (RNG) and, later, hydrogen
- Adds EBITDA immediately, expected to grow to around $800 million by 2025
"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 vice president customers and 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.
"By integrating bp pulse, our fast-growing EV charging business, along with biofuels and renewable natural gas businesses—and in time, hydrogen—we can help America's vital fleets and logistics companies decarbonize."
- bp is No. 7 and TravelCenters of America is No. 29 on CSP’s Top 40 update to the 2022 Top 202 ranking of U.S. convenience-store chains by company-owned store count. Watch for the updated list in June.
In February, bp announced it had agreed to acquire TA, subject to required approvals. Having received those approvals and with the transaction complete, TA's strategically located network of highway sites complements bp's existing predominantly off-highway convenience and mobility business in the US, the company said, enabling TA and bp to offer fleets and consumers a seamless nationwide service.
The company said the transaction will provide options to expand and continue to develop convenience and mobility offers through four of bp's five transition growth engines:
- EV charging
- Biofuels
- Hydrogen
- Convenience
“Convenience is one of five strategic transition growth engines that bp intends to grow rapidly through this decade,” the company said. “By 2030, bp aims for around half its annual investment to go into these transition growth engines; with around half of its anticipated cumulative $55 billion-$65 billion transition growth engine investment going into convenience, bioenergy and EV charging.
With the close of the acquisition, TravelCenters of America common shares have been converted into the right to receive $86 per share.
TravelCenters of America is a nationwide operator and franchisor of the TA, Petro Stopping Centers and TA Express travel center brands.
bp listed a total of 20,700 retail sites in first-quarter 2023, and 2,450 strategic convenience sites, which it defines as retail sites that sell bp-branded vehicle energy including bp, Aral, Arco, Amoco, Thorntons and bp pulse, and carry one of its strategic convenience brands. As of year-end 2022, bp had 1,224 company-owned and -operated c-store sites in the United States.
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