In an effort to increase its travel convenience and gasoline supply footprint in the United States, BP Plc (BP.L) of the United Kingdom announced on Thursday that it will acquire TravelCenters of America Inc (TA.O) for around $1.3 billion in cash.
BP has made an offer of $86 per share of TravelCenters owned, which is 74% more than the stock’s Wednesday closing price.
Thursday’s premarket trading saw a 71% increase in the company’s share price.
With a network of 281 highway locations spread over 44 states, TravelCenters provides a variety of amenities, such as parking, restaurants, travel shops, diesel and gasoline fuel, vehicle maintenance, and fuel.
According to the corporation, the services complement BP’s current convenience and mobility business and will contribute in the expansion of its offerings, which will eventually include hydrogen, biofuels, renewable natural gas (RNG), electric vehicle charging, and biofuels.
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One of BP’s five strategic transition growth engines is convenience. The London-listed company hopes to invest about half of its yearly investment in these transitional growth engines by 2030.
According to the firm, the acquisition of TravelCenters will boost BP’s EBITDA immediately, increasing to over $800 million in 2025.
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