BP announces $1.9B acquisition of truckstop operator

BP purchases TravelCenters of America.

BP Products North America has reached an agreement to purchase TravelCenters of America, the owner of TA, a major truckstop chain.

The acquisition, which is subject to regulatory and TravelCenters of America shareholder approval, will be for USD$1.3 billion in cash or $86 per share.

TA’s strategically-located network of highway sites complements BP’s existing predominantly off-highway convenience and mobility business, enabling TA and BP to offer fleets a seamless nationwide service.

In a statement issued today, BP said the acquisition would enable its global scale and reach to bring advantages in fuel and biofuel supply.

BP anticipates it will be able to provide greater options to expand and develop new mobility offers including electric vehicle (EV) charging, biofuels, renewable natural gas (RNG) and later hydrogen, both for passenger vehicles and fleets.

“This is BP’s strategy in action. We are doing exactly what we said we would, leaning into our transition growth engines,” said BP CEO Bernard Looney.

“This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns. 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 decarbonise their fleets. It’s a compelling combination.”

Convenience is one of BP’s five strategic transition growth engines in which it aims to significantly grow investment through this decade.

By 2030, BP aims for around half its annual investment to go into these transition growth engines.

Cumulatively that works out as an estimated $55-65 billion invested in convenience, bioenergy and EV charging between 2023-2030.

In January TravelCenters of America announced it had come to an agreement with Electrify America to offer electric vehicle charging at select TA/Petro locations with the first stations planned to be deployed in 2023.

Electrify America is regarded as the largest open direct current fast-charging network in the US

TA’s goal had been to install approximately 1,000 individual chargers at 200 locations along major highways over five years.

The entire process of designing and developing the charging stations will be managed by Electrify America including obtaining permit approvals, providing warranty and 24/7 support services, and conducting onsite maintenance.

The BP acquisition is expected to bring around 280 TravelCenters of America sites, spanning 44 US states nationwide, into the BP portfolio.

These sites, 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, as well as truck maintenance and repair services.

Around 70 per cent of TA’s total gross margin is generated by its convenience services business, almost double BP’s global convenience gross margin.

“Subject to approvals, we look forward to welcoming the TA team to BP,” said Dave Lawler, Chairman and President of BP America.

“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 travellers and professional drivers a seamless experience for decades to come.”

BP earlier this week announced its plans to invest USD$1 billion in EV charging across the US by 2030.

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