BP announced an agreement to grow its presence in the U.S. fuels and convenience retail business by taking full ownership of its Thorntons joint venture. BP has agreed to acquire the majority share it does not already own in the business from ArcLight Capital Partners LLC.
Once the transaction is complete, bp will become a leading convenience operator in the Midwest, with 208 owned and operated locations across six states, including Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida. BP plans to retain and build on the Thorntons brand.
“We have a proud history of high-quality retail brands across the country,” said David Lawler, chairman and president, BP America. “Incorporating Thorntons into our business combines their customer-first culture with our existing US retail network and will help us deliver our convenience strategy of offering customers what they want, where and when they want it.”
Headquartered in Louisville, Ky., Thorntons provides a competitive consumer offer and strong business operations. bp intends to build on, and further enhance, this long tradition of providing a distinctive customer experience while creating integrated value across bp’s mobility and convenience and fuels supply businesses.
Convenience retail is evolving amid rising demand from consumers with ever-changing needs. Based on Euromonitor analysis, the convenience opportunity will nearly double over the next decade in 45 of the leading economies of the world, growing at more than 5% each year.
This anticipated growth aligns with the strategy for bp’s convenience and mobility business, which aims to nearly double global earnings by 2030, from ca. $5 billion in 2019, and deliver 15-20% returns. BP aims to increase the number of strategic convenience sites in its global network from around 2,000 today to more than 3,000 by 2030.
“We are committed to putting the customer at the heart of what we do to help accelerate the mobility revolution and redefine the convenience experience at service stations,” said Greg Franks, senior vice president, mobility and convenience, Americas. “Thorntons has generated long-term customer loyalty over the last 50 years because of its best-in-class operations. We are excited to welcome them into our family.”
Today, BP has more than 11.5 million global customer touchpoints per day with a target of increasing that number to more than 15 million by 2025. BP’s customer app, BPme, has more than 3 million transacting customers globally, and the company aims to grow the number of customers on its digital platforms more than tenfold by 2030.
Thorntons’ successful, customer-focused app and digital presence will help enhance the digital solutions needed to develop innovative and personalized offers. This includes high-quality food, loyalty programs and next generation mobility solutions, including electrification.
The deal is expected to close later this year following regulatory approvals. Financial details of the agreement are not being disclosed.