TravelCenters of America Responds to Takeover Talk
WESTLAKE, Ohio — TravelCenters of America LLC (TA) Thursday issued a news release confirming it received a non-binding letter from a private equity firm in December, asking to have confidential discussions about the possibility of the firm buying the travel center and convenience store operator.
TA’s board of directors responded to the firm, widely reported to be San Francisco-based Golden Gate Capital, stating its interests were best served by pursuing its existing business plans.
“In its response, the TA Board agreed with the private equity firm that TA’s assets, business model and competitive position have tremendous potential,” the Westlake-based company wrote in its news release. “The TA board further articulated its belief that TA has the management team and other resources appropriate to realize such potential. The TA Board did not agree that the bulk of TA’s potential should be transferred to the private equity firm through a buyout.”
As CSNews Online reported on June 15, Golden Gate Capital offered $14 per share for TA, valuing the company at $540 million. Despite being rebuffed, Golden Gate Capital is reportedly still interested in purchasing TA, but will not pursue a hostile takeover.
After a large per-share price increase on June 15, TA’s New York Stock Exchange-traded shares declined by 7 percent per share in morning trade on June 16.
TravelCenters of America has locations in 43 states and Canada. It also operates convenience stores under the Minit Mart brand.