Sale of TravelCenters of America to BP caps successful turnaround
The subsidiary, BP America, has closed the acquisition of Flash Foods Inc., a Georgia-based company that operates more than 1,600 convenience stores in the southeastern U.S.
BP Products North America Inc. completed its $1.3 Billion acquisition of TravelCenters of America Inc. May 15, 2015.
TravelCenters, based in Westlake, Ohio (Nasdaq : TA), was delisted by the Nasdaq stock market as part of this acquisition.
The BP unit paid $86 per share in February for the shares of TravelCenters that were still outstanding. TravelCenters' shares have risen 74% since Feb. 15, the day before BP announced its acquisition. They were $49.44 on that date.
In a statement issued on May 15, Emma Delaney said that the deal added about 280 TA travel centers, Petro Stopping Centers, and TA Express travel centres to BP’s portfolio. This will provide a “turbo boost to (BP’s) convenience business and mobility in the U.S.," she stated.
TravelCenters' shareholders approved the deal in the last week, after the company rejected an offer of $92 per share -- or $1.4 Billion -- from Richmond-based Arko Corp.
According to a filing with the Securities and Exchange Commission, Jonathan Pertchik, CEO of TravelCenters, gave about $200,000 worth of TravelCenters stock on May 12 to a donor advised fund. On May 15, he sold shares worth $26.5 million.
This is in addition to $21.1 million in cash and equity that Pertchik would have received under a "golden parachutes" agreement prenegotiated if the company were acquired.
Pertchik was appointed CEO and managing Director of TravelCenters in December 2019. He will be responsible for turning around the company's operations. The company at the time had 261 travel centres in 44 states as well as Ontario, Canada.
Pertchik started the turnaround in May of the next year. They cut 130 corporate positions, brought in new senior management and raised more than $85,000 in equity in order to grow the company again.
TravelCenters, under Pertchik’s leadership, accelerated plans to franchise additional locations and converted certain stores into its smaller TA Express format. The company renovated many of their existing stores, and sold Quaker Steak & Lube and its Canadian stores.
TravelCenters is one of eight Northeast Ohio businesses that tripled their market capitalization in the third quarter 2021 despite the supply chain challenges brought on by the Covid-19 epidemic.
TravelCenters will be back on the Fortune 500 in May 2022. This list is the top 500 companies in the United States ranked by revenue. In January, TravelCenters announced that it would be closing its stores.