TravelCenters of America acquired by bp for $1.3 billion

bp adds a network of around 280 travel centers located on major highways across US.

BP Plc has reached an agreement to buy TravelCenters of America, one of the biggest full-service travel center operators in the U.S. The acquisition, which is subject to regulatory and TravelCenters of America shareholder approval, will be for $1.3 billion in cash.

The acquisition is expected to bring around 280 TravelCenters of America sites, spanning 44 US states nationwide, into the bp portfolio. These travel centers, 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% of TA’s total gross margin is generated by its convenience services business, almost double bp’s global convenience gross margin.

“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 decarbonize their fleets,” said Bernard Looney, CEO at bp.

TA’s network of highway sites complements bp’s existing predominantly off-highway convenience and mobility business, according to the global operator. bp will also look to expand and develop new mobility offers including EV charging, biofuels, renewable natural gas and later hydrogen, both for passenger vehicles and fleets.

“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,” said Dave Lawler, chairman and president of bp America.

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. Over 2023-2030 it aims that around half of its cumulative $55-65 billion transition growth engine investment will go into convenience, bioenergy and EV charging.