TravelCenters of America (TA) has recently been offered another acquisition bid from Party G, a fuel supplier and convenience store operator. Party G wants to acquire TA by offering $92 a share for 100% of the company. Party G planned to pay for the acquisition through a combination of cash, external financing and lines of credit with a 30-day timeline to conduct diligence and sign definitive agreements.
However, in February, TA agreed to be acquired by bp for $86 per share with a total equity value of approximately $1.3 billion. With the acquisition, TA’s stock price rose 2.1%. bp expects the acquisition to be accretive to free cash flow per share from 2024 and to deliver a return of over 15%.
According to an article from Seeking Alpha, on March 15, TA independent board members determined that the offer from Party G didn’t constitute a superior proposal to the bp deal. The board members said the offer would require “significant” third-party financing, and there was no firm commitment from a potential financing source to provide such financing, and the financing markets “remain uncertain.”
Founded in 1972 and headquartered in Westlake, Ohio, TA has more than 18,000 team members and serves guests at 275 locations in 44 states, principally under the TA, Petro Stopping Centers and TA Express brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services dedicated to providing great experiences for its guests.