ARKO Corp. has proposed an acquisition of TravelCenters of America (TA), issuing a letter to TA’s board urging them to consider the proposition. The company also implored TA to engage with, rather than exclude, ARKO in the sale process.
Following the submission of ARKO’s March 14 proposal to acquire TravelCenters for $92 a share and requesting access to diligence materials, and after reviewing the publicly available terms of the proposed transaction with bp Products North America, as well as TA’s preliminary proxy statement, ARKO has noted that it believes the board’s decision regarding the company’s proposal was not in the best interests of the TA’s stockholders.
ARKO has also made a point that its proposal surpasses bp’s previous offer of $86 a share and adds nearly $100 million in additional value to TA’s stockholders.
ARKO has made it clear that it is prepared to immediately commence confirmatory due diligence and quickly enter into an agreement and plan of merger along with the other ancillary arrangements on the same material terms as in the merger agreement with bp.
As one of the most acquisitive operators of convenience stores in the U.S., with 23 transactions completed since 2013 and one pending and expected to close in the second quarter of 2023, ARKO has never required any financing conditions and has closed every acquisition it has put under contract. ARKO’s proposal to TA offers no financing-related conditions.
Based in Richmond, Va., ARKO Corp. operates in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to retail and wholesale sites and charges a fixed fee, primarily to fleet fueling sites.
Founded in 1972 and headquartered in Westlake, Ohio, TravelCenters of America 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.