BP p.l.c. has reached a deal to acquire all of the outstanding shares of TravelCenters of America (TA) common stock for $86 per share in cash. The sale price represents an 84% premium to the average trading price of the 30 days ended Feb. 15 of $46.68. The total equity value is approximately $1.30 billion.
TA is the operator and franchisor of the TA, Petro Stopping Centers and TA Express travel center brands. The company has 281 locations across 44 states. Its offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, and travel stores, to name a few.
The TA board of directors has unanimously approved the deal.
The sale must be approved by shareholders who own a majority of TA’s shares outstanding. Service Properties Trust, which owns 7.8% of TA’s shares outstanding, and The RMR Group, which owns 4.1% of TA’s shares outstanding, have agreed to vote their shares in favor of the sale.
At the closing, TA will terminate its management agreement with RMR and pay a termination fee to RMR that is estimated at roughly $44 million.
The acquisition is expected to close mid-year, subject to shareholder and regulatory approval.
