BP Products North America Inc., a wholly-owned subsidiary of BP p.l.c., has acquired TravelCenters of America Inc. (TA) for $86 per share, approximately $1.3 billion in total equity value, BP and TA announced in separate press releases on Feb. 16. 

The acquisition adds a network of 280 travel centers along major U.S. highways across 44 states to BP’s convenience and mobility business. Averaging about 25 acres, the travel stops include about 600 full-service and quick stop restaurants and repair and maintenance services for trucks. 

The transaction is in line with BP plans to expand by offering electrical vehicle charging, biofuels, renewable natural gas and hydrogen passenger vehicles and fleets. The company plans on investing $1 billion in electric vehicle charging across the U.S. by 2030. 

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

Unanimously approved by the TA Board of Directors, the sale is still subject to regulatory and shareholder approvals, and Service Properties Trust, owning 7.8% of TravelCenters’ shares outstanding, and The RMR Group, owning 4.1% shares outstanding, have agreed to vote their shares.

BP anticipates the acquisition to be accretive to free cash flow per share in 2024 with a return of over 15%, according to BP’s press release. The company expects it will add EBITDA immediately and grow to approximately $800 million in 2025.