TravelCenters of America Inc. (TA) has agreed to be acquired by BP Plc for $86 a share, a 84% premium over the average trading price of the stock in the 30 days ended Feb. 15. RMR Group and Service Properties Trust, who hold 4.1% and 7.8% of TA’s stock respectively, have agreed to vote their shares in favor of the deal. BP expects the acquisition to add to EBITDA immediately, with a projected EBITDA of $800 million by 2025. The stock has gained 21% in the last 12 months, outperforming the S&P 500, which has fallen 7%. The deal is expected to close by mid-year 2023.
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%.
