TravelCenters of America Inc. (TA), a familiar name for anyone who has driven across the United States, is set to be acquired by BP p.l.c. in a significant $1.3 billion deal. This acquisition, announced on February 15, 2023, will see BP take over all outstanding shares of TA common stock for $86.00 per share in cash, marking an 84% premium over the recent average trading price. But what does this business move mean for the everyday road traveler who relies on Travel Centers Of America during their journeys?
For families and individuals who regularly embark on road trips, Travel Centers of America, with its TA, Petro Stopping Centers, and TA Express brands, represents a crucial network of stops for fuel, food, and rest. With 281 locations across 44 states, TA has become a ubiquitous presence on American highways. The company offers a wide array of services, from diesel and gasoline fuel to truck maintenance, restaurants, and travel stores, catering to both professional drivers and motorists.
According to Jonathan M. Pertchik, TA’s Chief Executive Officer, this acquisition is a result of TA’s successful turnaround and strategic improvements. He highlighted the company’s progress in enhancing its core business, expanding its network, and venturing into sustainable energy options with eTA. This deal follows a comprehensive process by TA’s Board, initiated after receiving unsolicited acquisition interest and involving competitive bidding from potential buyers.
The sale is pending approval from TA’s shareholders and regulatory bodies, with an anticipated closing by mid-year 2023. Major shareholders like Service Properties Trust and The RMR Group have already agreed to vote in favor of the acquisition.
What is TravelCenters of America?
TravelCenters of America is the nation’s largest publicly traded full-service travel center network. Since its foundation in 1972, TA has focused on providing comprehensive services for travelers on the go. Its locations are easily recognizable under the TA®, Petro Stopping Centers®, and TA Express® banners. For road travelers, these centers are more than just gas stations. They are designed to be convenient, one-stop destinations offering:
- Fueling Options: Both gasoline and diesel are readily available, catering to a wide range of vehicles.
- Food and Beverage: From quick snacks to full-service dining experiences at brands like Iron Skillet® and Country Pride®, TA ensures travelers have diverse food options.
- Rest and Relaxation: Clean restrooms, comfortable seating areas, and sometimes even amenities like showers offer much-needed breaks during long drives.
- Travel Essentials: Travel stores stocked with snacks, drinks, maps, and other travel necessities are a common feature.
- Truck Services: While also serving car drivers, TA centers are particularly well-equipped for truckers, offering maintenance and repair services, and ample parking.
Why is BP Interested in Travel Centers of America?
BP’s acquisition of TA signals a strategic move to expand its reach in the travel and convenience sector within the United States. As BP Chairman and CEO Bernard Looney stated, this acquisition will “advance BP’s convenience and mobility strategy.” For BP, integrating TA’s extensive network into its operations offers several advantages:
- Expanded Network: Gaining immediate access to TA’s 281 locations significantly increases BP’s customer touchpoints across the US highway system.
- Convenience and Mobility Growth: The acquisition aligns with BP’s broader strategy to grow its convenience and mobility business, moving beyond traditional fuel offerings.
- Future of Fuel: TA’s eTA business unit, focused on sustainable energy, could be attractive to BP as it navigates the evolving energy landscape and the increasing demand for alternative fuels.
What Can Travelers Expect?
While the acquisition is a significant business development, the immediate impact on travelers might be subtle. In the short term, it’s likely to be business as usual at TA, Petro Stopping Centers, and TA Express locations. However, in the longer run, travelers could potentially see:
- Enhanced Services: BP’s investment and operational expertise might lead to upgrades in facilities and services at TA locations.
- Integration of BP’s Offerings: There could be an integration of BP’s branded fuel and potentially other BP retail offerings within TA centers.
- Focus on Sustainable Options: With BP’s commitment to sustainability, we might see an accelerated expansion of electric vehicle charging and other alternative fuel options at TA locations, building upon TA’s existing eTA initiative.
Looking Ahead
The acquisition of TravelCenters of America by BP marks a notable shift in the landscape of highway travel services. For travelers, Travel Centers of America will likely continue to be a dependable part of their road journeys. As the deal progresses and BP integrates TA into its operations, it will be interesting to observe how this acquisition shapes the future of travel centers and the overall experience for American road travelers.
For more information about TravelCenters of America, you can visit www.ta-petro.com.
