Bridgestone to buy Pep Boys for about $835M
This photo from July 2003, shows Pep Boys mascots Manny, Moe and Jack above a store location in West Philadelphia.
NEW YORK – Tire and auto service company Bridgestone Corp. is buying auto parts and repair company Pep Boys for $835 million, in a deal that will help Bridgestone gain a more dominant position.
The offer was for $15 per share in cash, a premium of almost 23.5 percent over Pep Boys’ closing price Friday.
The deal is expected to close in the beginning of 2016 and will add 800 locations to Bridgestone’s nationwide network of 2,200 tire and automotive service centers.
Pep Boys has one location in Washington and Greene counties, on Murtland Avenue in South Strabane Township.
The deal comes months after the president/CEO of Pep Boys – Manny, Moe & Jack resigned as speculation built over whether the company was considering a sale. Tokyo-based Bridgestone Corp. said the move will help accelerate its global growth strategy.
“Our shared expertise and commitment to our customers and employees will help us build an even stronger organization,” Gary Garfield, CEO and president of Bridgestone America, which is based in Nashville, Tenn., said in a statement.
Philadelphia-based Pep Boys was reviewing options to help boost shareholder value since June. The current deal helps to achieve that goal, said CEO Scott Sider.