TravelCenters of America Board Members Come Out Against Unsolicited Offer
WESTLAKE, Ohio — TravelCenters of America Inc. (TA) is stirring up more interest.
One month after the travel center operator agreed to be acquired by BP in a $1.3 billion deal, TA acknowledged it received a $92 per share offer from Party G, a publicly traded fuel supplier and convenience store operator. BP's offer came in at $86 per share.
The bid came on March 14, four weeks after BP and TA announced their agreement.
According to a TA proxy filing with the U.S. Securities and Exchange Commission, Party G's proposal called for the company to finance the purchase through a combination of cash on hand, external financing and lines of credit, and contemplated a 30-day timeline to conduct diligence and sign definitive agreements.
Three days later, TA's board of directors met with members of the company's management with representatives of Citigroup, Ropes & Gray and Venable in attendance to discuss the unsolicited offer.
Citigroup acted as exclusive financial advisor to TA on the BP deal and Ropes & Gray acted as TA's legal advisor in connection with the transaction, as Convenience Store News previously reported.
On March 22, TA's independent board members determined that Party G's proposal didn't constitute a superior proposal to the BP deal. The board members said the offer would require "significant" third-party financing and there was no firm commitment from a potential financing source to provide such financing and the financing markets "remain uncertain," reported Seeking Alpha.
Westlake-based TravelCenters of America Inc. is the nation's largest publicly traded full-service travel center network. Founded in 1972, its more than 18,000 team members serve guests in 281 locations in 44 states, principally under the TA, Petro Stopping Centers and TA Express brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking, and other services dedicated to providing great experiences for its guests.
TA is committed to sustainability, with its specialized business unit, eTA, focused on sustainable energy options for professional drivers and motorists.
The operator has more than 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet and Country Pride.