Bridgestone Americas is moving to acquire automotive parts retailer and service provider Pep Boys in an all-cash transaction valued at $835 million in share value, the company announced.
Bridgestone Retail Operations has entered into a merger agreement with Philadelphia-based The Pep Boys – Manny, Moe & Jack. As part of the deal, Bridgestone's retail subsidiary would acquire 800 Pep Boys stores to add to its 2,200 existing stores. The stores operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners. Pep Boys manages more than 7,500 service bays.
Under terms of the deal, Bridgestone will pay $15 per share, which represents a 23% premium over Pep Boys closing price of $12.15 on Oct. 23.
Pep Boys is one of the largest national account vendors for the fleet management companies. Pep Boys also has a robust direct fleet program.
Read the full announcement here.