Editor’s note: This story was updated at 4 p.m. ET on Feb. 16 to include additional information.
TravelCenters of America, which operates truck stops across the country under the TA brand, is getting bought by BP America.
The price of the acquisition is approximately $1.3 billion, or $86 per share. TA stock (NASDAQ: TA) closed Wednesday at $49.44 per share.
“Today’s announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans,” TA’s CEO Jonathan Pertchik said in a prepared statement announcing the sale. “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.”
Even before the pandemic, which pushed TA’s stock price to less than $10 per share in its early days, TA had struggled, with a stock price just above $10 per share in late 2019.
The sale will mean that all three major U.S. truck stop companies — TA, Love’s and Pilot Flying J — will be privately owned, though Pilot Flying J has a 38.6% share held by Berkshire Hathaway (NYSE: BRK.A).
BP has established a long-term strategy that sees oil and gas exploration as declining as a percentage of the company’s operations and investment dollars. A purchase of a truck stop that is one of the biggest diesel marketers in the country might seem at odds with that strategy.
But BP also has laid out five pillars of its future growth, and a TA acquisition fits in with several of them.
The five goals going forward, according to BP, are bioenergy, electric vehicle charging, convenience, renewables and power, and hydrogen capture and storage.
In the prepared statement released by BP America regarding the acquisition, the company said buying TA “supports delivery” of meeting the convenience and EV charging goals and having a target of more than $1.5 billion in earnings before interest, taxes, depreciation and amortization in 2025. While hydrogen was not specified, the possibility of refueling hydrogen vehicles when and if they are commercially available at some point also could help meet a third goal of the five.
On a smaller scale, BP already has begun to provide for a truck-specific “corridor” in Europe with stations to recharge vehicles. The plan was announced last month for a stretch of highway in Germany.
“TA’s strategically-located network of highway sites complements BP’s existing predominantly off-highway convenience and mobility business, enabling TA and BP to offer fleets a seamless nationwide service,” the BP announcement stated.
Having TA in the BP fold will “provide options to expand and develop new mobility offers including electric vehicle charging, biofuels, renewable natural gas (RNG) and later hydrogen, both for passenger vehicles and fleets.”
Gary Bevers, a longtime fuels market consultant who heads Bevers & Co., said BP’s fuel operations had been declining in volume for several years. It hindered the company’s ability to set up operations at fuel terminals around the country owned by third parties, “because nobody wants to be in a terminal unless they can be a player. They don’t want to have 1% of the market at a terminal.”
Having TA’s more than 200 outlets as end users needing supply out of a wide range of terminals wil increase the volume it needs and can help it reestablish profitable positions at those facilities, Bevers said.
BP did not respond to FreightWaves’ questions by publication time.
BP’s statement said it had 6,000 retail outlets flying the BP brand. Trends in the retail fuels market for many years have seen major oil companies sell any company-owned outlets in favor of a branded arrangement where a retail outlet “flies” a brand such as BP or Exxon. The retail outlet is required to buy what is known as branded fuel from wholesale terminals, known in the industry as the “rack.”
It was not clear whether the TA brand will remain or be rebranded as BP.
TA has been pursuing growth through franchising in recent years, part of Pertchik’s turnaround plan. In a statement released last month, TA said in 2022 it had signed 30 new franchise agreements for TA, Petro Stopping Centers and TA Express travel centers, reaching its goal for the year. Actual openings of new franchised sites totaled three last year and are expected to be 20 this year.
The sale of TA has been looming for a considerable period of time, according to the TA statement. Its statement said the sale is the “culmination of a comprehensive process by TA’s board.” That process featured “competitive rounds of bidding from potential buyers.”
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Randall Zabel
Please make these places be the way it was before these (meaning TA/Petro, Pilot/Flying J) were turned from four different truck stop. We drivers use to have three stops with real 24/7 restaurants and one fast food places out of these four.
The current TA/Petro is leaning toward fast food.
We drivers love out here and need better conditions in our nutrition, please
Gary frederick
Of course your making money when you sell a bottle of fuel anti gel for $ 24.99 and you pay less then $ 10.00 for it when auto parts stores sell it for $ 12.00 even wal mart us $12.49. You charge $93.00 to go get a part when I’m in your shop getting work done plus hourly rates I could be bragging about all the money I was making. $25.00 for a parking spot overnight after I buy $900.00 worth of fuel. Don’t get me started on restaurant prices cost way to much to eat at your places with that frozen food food service garbage $ 10.00 for just a chicken breast nothing else plus tip. Again I can keep going on. Yeah ta keep bragging as your loyal customers find other place to spend there money.
Kenny Short
When BP took over sohio in the 80s sohio owned TA and they immediately put them up for sale.now 30 some years later they are buying them back. Makes since ro me.
Frank Hammond
I agree with Death Master – The Ontario, CA stop is not only dirty and unkempt, but it is a scary place to stop. I stop East of the 15 when I am on I-10
John M.Stecz
I’m retired now but did long haul trucking from 1977 until 1997 and T/A was always the truck stop I chose..The Brookville Pennsylvania was always my favorite. Got my truck serviced there and even win a Harley Davidson there in 1991. Great people
Wilbert Alexander
Hi I am glad they are being sold ,I hope things improve at their over priced TS s .the people in the shops are some time ok but to most lie and they never give we uh any to h in ng back when the mass up the repair job ,I have be we n riped off 2 times and after I went back they just said they s nothing they can do ,the food in they restaurants is no good gotten sick 2 times don t eat their at all ,they only want to charge u all they can and get u out of the shops ,hope BP does better .
ThaGearJammer25/8
TA Petro are my favorite. their are some really nice TA and Petros along with the trash ones. best showers multiple heads. waterfall ones. coffee is getting better. Happy about this cuz that means we BEST get BP Diesel which is 5 star quality. that would translate to better emmisons and less problems vs the cheap bio blends. GIVE US off-road number one and a premium Diesel blend BP!@!
Death Master
Over priced run down truck stops. Collect all that money for paid parking & refuse to fix their pothole city parking lots . Hope TA & Petro both go bankrupt . The sit down restaurant is not but some slop they put together to serve you . They don’t care about truckers . All they care about is how much money they can rip you off for . Ontario Ca is the worst .