BP Extends Convenience Store Footprint With $1.3B Deal for TravelCenters of America

The battle for hegemony continues in one of the hottest CRE sectors—convenience stores, particularly those paired with gas stations.

BP, the British oil giant, has announced that it is acquiring TravelCenters of America (TA) for $1.3B in a cash deal. The acquisition will add 281 highway locations in 44 states operating under the TA, Petro Shopping Centers and TA Express brands.

TA’s locations include more than 600 full-service and quick-service restaurants as well as gas stations and repair shops for cars and trucks. Each location averages encompasses about 25 acres, according to a report in Chain Store Age.

TA has been upgrading its outlets across the US. Last month, the company announced plans to install EV charging units at 200 US locations.

BP, which operates an estimated 8,000 off-highway locations globally, said the acquisition of TA will enable it to offer truck fleets and other vehicles “seamless nationwide service” in the US.

BP currently operates about 2,000 North American gas station convenience stores under the BP, Amoco, Thornton’s and ampm brands, said it is aiming to expand the portfolio to 3,000 stores by 2030.

“We’re doing exactly what we said we would, leaning into our transition growth engine. This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns,” said Bernard Looney, CEO of BP, in a statement.

Last summer, the company opened its first East Coast location for its ampm brand in NYC, one of four East Coast openings for the chain in 2022.

Jon Pertchik, TA’s CEO, said in a statement that BP’s acquisition of TA for $86 per share is the result of “a successful implementation of our turnaround and strategic plans.”

“We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels, and improved our operating and financial results,” Pertchik said.

The number of convenience stores operating in the US, now totaling more than 150,000, increased for the first time in four years in 2022, according to the 2023 NACS store count, GlobeSt. reported. A majority of US convenience stores are owned by single-store operators.

Nearly 80% of these stores, about 119K, are paired with gas stations, according to the annual survey. Texas leads in convenience stores, with more than one in 10 stores in the US located in the Lone Star State.