BP Oil, one of the world’s largest oil and gas companies, has established itself as a major player in the oil and gas industry with operations spanning the globe. Now, TravelCenters of America, which operates truck stops across the country under the TA brand, is getting bought by BP America.
TravelCenters of America (TA) stock rose as much as 70% on Thursday after the company announced BP’s North America subsidiary would buy the fuel and service center operator in a $1.3 billion, all-cash deal – $86 per share. This comes after TA closed out Wednesday night at $49.44 per share, an immense increase in less than 24 hours. TA CEO Jonathan Pertchik prepared a statement announcing the sale as a “successful implementation of our turnaround and strategic plans.”
Pertchik continues, “We have improved our core travel center business, expanded our network, launched TA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level.”
TA operates around 280 locations across 44 states, including more than 600 full-service and quick service restaurants. BP operates about 8,000 off-highway locations. This sale means that all three major U.S. truck stop companies will be privately owned, next to Love’s and Pilot Flying J.
BP says acquiring TA will support BP’s target of $1.5 billion in EBITDA by 2025 in its convenience and EV charging business, with a longer-term goal of $4 billion in EBITDA by 2030.
In recent years, BP has faced significant challenges, including the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. However, the company has worked hard to rebuild its reputation and regain the trust of the public and its investors.
With a strong track record of innovation and adaptation, the future looks bright for BP Oil – let’s just make sure the company refrains from anymore oil spills, ok?
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