BP Concludes TravelCenters Of America Buyout, Adds To EBITDA Immediately

Author: Lekha Gupta | May 15, 2023 11:35am

• BP plc (NYSE:BP) subsidiary, BP Products North America Inc., completed the previously announced acquisition of TravelCenters of America Inc (NASDAQ:TA) for $1.3 billion.
• The acquisition price represented an 84% premium to the average trading price of the 30 days of $46.68 ending February 15. 
• The buyout boosts BP's US convenience and mobility business by adding a network of around 280 travel centers strategically located across the U.S.
• The transaction also offers BP a growth opportunity to enhance its transition growth engines, with around half of its expected cumulative investment of $55 billion-$65 billion to be spent on EV charging, convenience and bioenergy by 2030.
• Emma Delaney, executive vice president, customers & products, commented, "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 US. Combining TA's sites on US highways with our brilliant retail network off the highway immediately expands our offer and doubles our global convenience gross margin."
• This month, the company reported mixed Q1 2023 results, on a decline in underlying production. 
• As of March 31, 2023, BP had cash and equivalents of $30.4 billion.
• Price Action: BP shares are trading higher by 1.08% at $36.19 on the last check Monday.

Posted In: BP TA