BP Products North America Inc. completed its $1.3 billion acquisition of TravelCenters of America Inc. (TA). This allows for the growth of bp’s strategic convenience and mobility business and welcoming of thousands of additional employees into bp. It adds a network of around 280 travel centers.
“We are thrilled to welcome the TravelCenters of America team to bp and give a turbo-boost to our convenience and mobility business in the U.S. Combining TA’s sites on U.S. highways with our brilliant retail network off the highway immediately expands our offer and doubles our global convenience gross margin,” Emma Delaney, executive vice president customers & products, bp, said.
“By integrating bp pulse, our fast-growing EV (electric vehicle) charging business, along with biofuels and renewable natural gas businesses — and in time, hydrogen — we can help America’s vital fleets and logistics companies decarbonize,” she continued.
In February, bp announced it had agreed to acquire TA, subject to required approvals. Having received those approvals and with the transaction complete, TA’s strategically located network of highway sites complements bp’s existing predominantly off-highway convenience and mobility business in the U.S., enabling TA and bp to offer fleets and consumers a seamless nationwide service.
The transaction will provide options to expand and continue to develop convenience and mobility offers through four of bp’s five transition growth engines:
- EV charging
- Biofuels
- Hydrogen
- Convenience
Convenience is one of five strategic transition growth engines that bp intends to grow rapidly through this decade. By 2030, bp aims for around half its annual investment to go into these transition growth engines, with around half of its anticipated cumulative $55-$65 billion transition growth engine investment going into convenience, bioenergy and EV charging.
The acquisition adds earnings before interest, taxes, depreciation and amortization (EBITDA) immediately, expected to grow to around $800 million by 2025, underpinned by investment, integration value and synergies.
With the close of the acquisition, TravelCenters of America common shares have been converted into the right to receive $86 per share.
bp’s ambition is to become a net-zero company by 2050 or sooner, and to help the world get to net zero. bp has a larger economic footprint in the United States than anywhere else in the world, investing more than $140 billion since 2005 and supporting about 245,000 jobs.