Pep Boys to be Acquired for $835 Million
Bridgestone has agreed to buy Pep Boys — Manny, Moe, & Jack for $835 million in an all-cash deal.
Founded by four friends in 1921, Pep Boys grew from a single auto supply store in Philadelphia to one of the world’s largest companies. Still headquartered in Philly, it now has 800 locations across the United States and Puerto Rico offering tires, maintenance, parts and accessories. It now joins Bridgestone’s network of 2,200 tire and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.
Although Pep Boys won’t trade on the New York Stock Exchange after the deal, don’t expect the Pep Boys name to go away completely. Bridgestone has plans to keep an unspecified number of stores under the Pep Boys banner, USA Today reports.
The deal is expected to close in early 2016. The $835 million price tag values Pep Boys (PBY) at $15 per share, a 23 percent premium on over Pep Boys’ closing price of $12.15 on October 23.
“We are excited to join the Bridgestone family of companies to become part of the world’s largest company-owned tire and automotive service retail network,” said Scott Sider, CEO of Pep Boys in a statement. “This transaction delivers a significant premium for Pep Boys’ shareholders and offers new opportunities for our employees across a bigger business. We look forward to working with the Bridgestone team for a smooth and successful transition.”
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