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ARKO Corp. counters bp’s proposed acquisition of TravelCenters

ARKO Corp. counters bp's proposed acquisition of TravelCenters
Photo courtesy of bp

ARKO Corp., one of the largest convenience store operators in the United States, has proposed a counter-bid for bp’s proposed USD1.3 billion acquisition of TravelCenters of America, which was announced last month.

On March 27, ARKO Corp. issued a letter urging TravelCenters of America’s board to seriously consider ARKO’s proposal to acquire TravelCenters and engage with, rather than exclude, ARKO in the sale process. 

On March 14, 2023, ARKO submitted an unsolicited bid to acquire TravelCenters for USD92 a share. ARKO said its proposal represented a “meaningful premium of USD6.00 per share.”

“As one of the most acquisitive operators of convenience stores in the United States, with 23 transactions completed since 2013 and one pending and expected to close in the second quarter of 2023, ARKO has never required any financing conditions and has closed every acquisition it has put under contract. ARKO’s proposal to TravelCenters offers no financing-related conditions,” the company said in a statement.

bp’s acquisition price of USD1.3 billion, or USD86 per share, represents a multiple of around six times based on TA’s last 12 months’ EBITDA (earnings before interest, taxes, depreciation and amortization.

ARKO did not disclose whether its offer had been rejected, but said it believes the TravelCenter board’s decision regarding ARKO’s proposal “was incorrect and not in the best interests of TravelCenters’ stockholders.” 

Based in Richmond, Virginia, U.S.A., ARKO is a Fortune 500 company that owns 100% of GPM Investments, LLC, one of the largest operators of convenience stores and wholesalers of fuel in the United States. GPM Investments owns and operates c-store brands including Fas Mart, Shore Stop, Scotchman, BreadBox, Young’s, Li’l Cricket, Next Door Store, Village Pantry, Apple Market, Jiffi Stop, Admiral, Roadrunner Markets, Jiffy Food Marts, E-Z Mart, 1 Stop, TownStarr, ExpressStop and Handy Mart.