Travelcenters of America Inc (NASDAQ:TA) stock rocketed some 70% as oil-company-in-transition BP PLC (LSE:BP.) agreed to buy the US truck stop operator for US$1.3 billion in cash.
It marks BP’s second notable investment into US infrastructure services in as many days, following on from a US$1B commitment to building a network EV charging points alongside a partnership with Hertz.
Today, BP agreed to pay US$86 per Travelcenters share in cash which represents an 84% premium.
It gives BP a network of 280 centers located across major highway networks and the portfolio is expected to complement the energy firm’s consumer facing convenience and mobility businesses.
Convenience and retail are seen as complementary interests for an energy transition strategy that includes EV charging stations, presenting additional revenue streams as consumers eat and/or shop whilst waiting for the car batteries to recharge.
BP today specifically highlighted that convenience is one of its five ‘strategic transition growth engines’ in which it expects to invest through the remainder of this decade – with some US$55B to US$65B of investment expected by 2030 across convenience, bioenergy and EV charging.
“This is bp’s strategy in action,” BP chief executive Bernard Looney said in a statement.
“We are doing exactly what we said we would, leaning into our transition growth engines.
“This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns.
“Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination.”
Travelcenter chief executive Jonathan Pertchik said the deal was a result of the group’s successful turnaround and strategic plan.
In New York, Travelcenters rose by US$34.73, or 70.25%, to close most of the takeover premium and change hands at US$84.17 per share.
Yesterday, BP unveiled its intention to invest US$1B to expand its network of electric vehicle charging points across the US by 2030, in partnership with Hertz.
The plan is to bring its fast-charging points to “more than a dozen US cities”, it said.
The BP investment is intended to support new demand created by Hertz Global (NYSE:HTZ) which in parallel said it intended to make a quarter of its vehicle hire fleet electric by the end of 2024. Hertz is acting as a cornerstone investor in the BP rollout.
At present, BP has around 22,000 EV charge points worldwide and it expects to grow the total to over 100,000 by the end of the decade. “This is about more, faster. We’re bringing more, fast-charging options to more Americans for faster EV adoption,” Dave Lawler, BP America chair and president, said.