TravelCenters of America Enters Agreement to Be Acquired by Hospitality Properties Trust
For Immediate Release
Westlake, OH. September 18, 2006 – TravelCenters of America, Inc. (TA) announced today that it has entered into an agreement with Hospitality Properties Trust (NYSE: HPT), under which HPT would purchase TA for total consideration of approximately $1.9 billion. TravelCenters expects business to continue as usual at its 162 locations in 40 states and Canada during the transition period.
Hospitality Properties Trust is a real estate investment trust, or REIT, which currently owns 310 hotels located throughout the United States, Puerto Rico and Ontario, Canada. HPT is headquartered in Newton, Massachusetts.
TA was acquired by Oak Hill Capital Partners, L.P., a private equity investment group and other investors, including TA management and Freightliner in 2000. Previously, the company was owned by a group of institutional investors led by The Clipper Group as well as TA management and Freightliner.
TA currently expects this transaction to close in early 2007. HPT has arranged interim financing for this transaction from Merrill Lynch & Co., and currently anticipates obtaining long-term financing for this transaction by the issuance of both debt and equity securities.
In May, TA reaffirmed its commitment to continued growth and enhancement of its array of quality products and services for professional drivers and motorists by seeking a new major investor to help finance its growth strategies. Those strategies include additional locations and an increase in the number of shop bays.
Tim Doane, President and Chief Executive Officer of TA, stated, “We are very pleased to announce this latest step in the evolution of our Company. We anticipate a bright future for TravelCenters of America and are excited about the opportunities these changes will bring to us and our customers. Over the last decade, TA’s steady growth has continually rewarded the financial support and confidence of our major investors. We are pleased to announce the plan for this new structure, as we believe it will provide TA with the opportunity and resources to provide enhanced services at expanded locations to all our customers”.
Doane added, “As was the case with previous ownership transitions, we expect business as usual at all TA TravelCenters locations. As we expand and enhance our services, we will continue to offer fleets, owner-operators and motorists the highest-quality travel center services available.”
John Murray, President of HPT commented, “We are pleased to have this opportunity to undertake the transactions announced today. We believe TA is the premier full service network in the country and we look forward to the continuance of its track record of providing value to its stakeholders.”