BP Products North America announced Thursday that it reached an agreement to buy TravelCenters of America for $1.3 billion in cash.

The purchase is subject to regulatory and shareholder approval.

“TA’s strategically-located network of highway sites complements BP’s existing predominantly off-highway convenience and mobility business, enabling TA and BP to offer fleets a seamless nationwide service,” BP said in a news release. “In addition, BP’s global scale and reach will, over time, bring advantages in fuel and biofuel supply as well as convenience offers for consumers.”

The acquisition is expected to include around 280 TravelCenters of America sites, spanning 44 states, into the BP portfolio. The travel centers average around 25 acres.

Iowa 80 Truckstop became a TA (then called Truck Stops of America) franchisee in 1992. The truckstop is family-owned as part of the Iowa 80 Group that also owns several other travel centers, so the BP TA purchase would not involve anything at “The World’s Largest Truckstop” other than the franchise relationship.

“This is BP’s strategy in action,” BP CEO Bernard Looney said. “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.”

BP said around 70% of TA’s total gross margin is generated by its convenience services business, “almost double BP’s global convenience gross margin.”

Dave Lawler, chairman and president of bp America: “Subject to approvals, we look forward to welcoming the TA team to bp. TA’s amazing nationwide network of on-highway locations combined with bp’s more than 8,000 off-highway locations have the potential to offer travelers and professional drivers a seamless experience for decades to come.”

bp yesterday announced plans to invest $1bn in EV charging across the US by 2030.

The acquisition price of $1.3 billion, or $86 per share, represents a multiple of around six times based on last twelve months’ TA EBITDA.

The Iowa 80 “World’s Largest Truckstop,” a TA franchisee, with a BP sign in the distance in Walcott. The truckstop is family-owned by Iowa 80 Group, so the BP TA purchase would not involve anything there but the franchise relationship. (OurQuadCities.com file photo)