TravelCenters of America Inc. TA said Thursday it has agreed to be acquired by BP Plc BP for $86 a share in cash, or about $1.3 billion. The price is equal to an 84% premium over the average trading price of the stock in the 30 days ended Feb. 15. The deal is expected to close by mid-year, 2023, and two of the company’s main shareholders — RMR Group RMR, with a 4.1% stake, and Service Properties Trust SVC with 7.8% of the stock — have agreed to vote their shares in favor of it. “Following the implementation of TA’s turnaround plan and several quarters of improved operating performance, TA received unsolicited interest to acquire the company,” TravelCenters said in a statement. It then hired financial and legal advisers to review a potential sale of the company that culminated in today’s announcement, it added. BP, meanwhile, said it expects the deal to add to EBITDA immediately, referring to earnings before interest, taxes, depreciation and amortization, which is expected to grow to around $800 million by 2025, underpinned by investment, integration value and synergies. It’s further expected to deliver over 15% returns and be accretive to free cash flow per share from 2024 and to almost double BP’s global convenience gross margin. The stock rose 71% premarket and has gained 21% in the last 12 months, outperforming the S&P 500 SPX, which has fallen 7%.
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