Electric vehicle (EV) charging appears to be one of the factors behind energy company BP’s proposed purchase of TravelCenters of America.
The two companies on Thursday revealed the plans for BP to acquire TravelCenters of America in an all-cash $1.3 billion deal, subject to regulatory and TravelCenters shareholder approval. TravelCenters of America said the target close date for BP’s purchase of the company is in mid-2023.
BP TO BUY TRAVELCENTERS OF AMERICA FOR $1.3B
"This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns," BP CEO Bernard Looney said in a statement. "Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and renewable natural gas and later hydrogen, we can help our customers decarbonize their fleets."
Under the proposed purchase, roughly 280 travel centers located across 44 states that TravelCenters has will go to BP, according to the news release.
The acquisition "supports delivery of BP’s convenience and EV charging growth engine target of more than $1.5bn EBITDA in 2025 and aim for more than $4bn in 2030," the oil giant said in the release. In a tweet, BP also touted it as helping "open doors to national on the go EV charging."
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BP has said its goal is to grow its global EV footprint by 2030 to over 100,000 charging points, about 90% of which it wants to be "rapid" or "ultra-fast." As of mid-February, its charging points count is 22,000.
Meanwhile, TravelCenters of America recently said that over a five-year time span, it is seeking to put in place approximately 1,000 chargers. It is buying the EV chargers for 200 locations as part of an agreement with Electrify America that TravelCenters unveiled in January.
The announcement of BP’s proposed TravelCenters of America acquisition comes just one day after the energy company revealed a planned $1 billion investment in U.S. charging points for EVs. That investment will take place by 2030, it said.
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Of the $55 billion to $65 billion of cumulative investment from 2023 to 2030 in what BP calls transition growth engines, the oil giant says it is targeting half going toward convenience, bioenergy and EV charging.
BP posted $4.8 billion in fourth-quarter underlying replacement cost profit earlier in the month. For the full year, its underlying replacement cost profit was $27.65 billion, an increase compared to 2021’s $12.82 billion.
