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BP to Buy Travel Centers of America

Gas giant and c-store operator paying $1.3 billion for chain

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BP Products North America Inc. (Houston) has reached an agreement to purchase TravelCenters of America (Westlake, Ohio), an operator of almost 300 full-service travel centers. The acquisition, which is subject to regulatory and TravelCenters of America shareholder approval, is priced at $1.3 billion in cash.

The acquisition involves about 280 TravelCenters of America sites, spanning 44 U.S. states. These centers, which average around 25 acres, offer a 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.

About 70 percent of TA’s total gross margin is generated by its convenience services business, almost double BP’s same measure.

TA’s 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, the companies say. BP’s current crop of convenience stores consists of about 1000 locales (mostly on the West Coast) operating under the ampm brand.

“This is BP’s strategy in action,” BP CEO Bernard Looney said in a news release. “This deal will grow our convenience and mobility footprint across the U.S. 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. It’s a compelling combination.”

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