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United States : Bridgestone to take over Pep Boys.

Bridgestone Americas, Inc. (Bridgestone) and The Pep Boys Manny, Moe & Jack have announced that Pep Boys and Bridgestone Retail Operations, LLC (BSRO), a 100% owned subsidiary of Bridgestone, have entered into a definitive merger deal.

The all-cash deal will see BSRO acquiring Pep Boys for $15.00 per stock, or nearly $835 million in total equity value, representing a premium of 23% over Pep Boys' closing price of $12.15 on October 23, 2015 and a premium of 62% over Pep Boys' unaffected (before market speculation of a potential deal) price of $9.25 on May 19, 2015.

The deal has been structured as a tender offer.

Philadelphia-based, Pep Boys, has been one of the country's automotive aftermarket chains since 1921.

The deal would close in the start of 2016.

Gary Garfield, CEO and President of Bridgestone Americas, said,"Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry. Our shared expertise and commitment to our customers and employees will help us build an even stronger organization."

CEO of Pep Boys, Scott Sider, added, "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. 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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Publication:Mena Report
Date:Oct 27, 2015
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