TravelCenters of America Inc said on Thursday it would be acquired by BP Plc for about $1.3 billion in cash, as the British energy giant looks to expand its travel convenience and fuel supply footprint in the United States.
BP has offered $86 per TravelCenters share held, which represents a 74% premium to the stock’s last close on Wednesday.
The company’s shares jumped 71% in premarket trading on Thursday.
TravelCenters owns a network of about 281 highway sites across 44 states and offers services including diesel and gasoline fuel, truck maintenance and repair, restaurants, travel stores, and parking.
ELECTRIC VEHICLES MORE EXPENSIVE TO FUEL THAN GAS-POWERED CARS AT END OF 2022: CONSULTING FIRM
The services complements BP’s existing convenience and mobility business and will help in expanding its offers including electric vehicle charging, biofuels, renewable natural gas (RNG) and later hydrogen, the company said.
TESLA TAKES BIDEN’S $7.5B SUBSIDY, AGREES TO OPEN UP CHARGING NETWORK, WHITE HOUSE SAYS
On Wednesday, BP announced plans to invest $1 billion in EV charging across U.S. by 2030.
Convenience is one of BP’s five strategic transition growth engines. By 2030, the London-listed aims for around half its annual investment to go into these transition growth engines.
CLICK HERE TO GET THE FOX BUSINESS APP
The acquisition of TravelCenters is expected to add to BP’s EBITDA immediately, growing to around $800 million in 2025, the company said.