TravelCenters of America, Inc. (NASDAQ: TA) operates a national network of full-service travel centers through its TA, Petro Stopping Centers and TA Express brands. The company maintains a footprint of 281 locations across 44 states. Shares of the travel network company are soaring 71% through early trading on Thursday, February 16, 2023. Over the past three months, TravelCenters of America has seen average daily volume of 96,810 shares. However, volume of 7.08 million shares or dollar volume of around $598.26 million, has already exchanged hands through early trading.

Shares of TravelCenters of America are surging after the company announced that it has entered into a definitive agreement to be acquired by BP plc (NYSE: BP) for $86.00 per share in cash or a total value of $1.3 billion. The sale offer represents an 84% premium compared to TravelCenters’ closing price on February 15, 2023.

Management says the deal comes as the Board of Directors and management team have meticulously implemented a turnaround plan, which has led to several quarters of improving performance. The sale still requires shareholder approval. Service Properties Trust (NASDAQ: SVC) and The RMR Group (NASDAQ: RMR) own 7.8% and 4.1% of TravelCenters of America’s outstanding shares.

Both Service Properties Trust and The RMR Group have both agreed to enter a vote in favor of the sale. Upon closing of the transaction, TravelCenters of America will terminate its management agreement with RMR and pay a termination fee that is estimated at $44 million. Overall shareholder and regulatory approval are estimated to be finalized be mid-year 2023.

Jonathan M. Pertchik, TravelCenters of America’s Chief Executive Officer: “Today’s announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans. We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level.”

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