Manny, Moe and Jack seem to be on their way to becoming part of the world’s largest tire company.
Bridgestone Americas, Inc. and The Pep Boys – Manny, Moe & Jack (Pep Boys; announced on Christmas Eve that Pep Boys and Bridgestone Retail Operations, LLC have entered into a definitive merger agreement under which BSRO will acquire Pep Boys in an all-cash transaction for $17 per share, or around $950 million.
Philadelphia-based Pep Boys has long operated locations in northern Delaware and has grown its presence in the past decade with the acquisition of Penn-Jersey locations. Bridgestone, which is based in Japan, bought Firestone in 1988 and has operated its tire retail operation under that name.
Investor Carl Icahn had made an offer for the company, but the board of Pep Boys accepted Bridgestone’s $17 a share deal on the belief that it was superior.
Pep Boys would pay nearly $40 million to Bridgestone if Icahn or another company came up with a superior offer, a release stated. The all-cash offer is believed to be aimed at boxing out Icahn.
Pep Boys has been one of the nation’s leading automotive aftermarket chains since 1921. With more than 7,500 service bays in more than 800 locations in 35 states and Puerto Rico, Pep Boys offers tires, maintenance and repair and parts and accessories.
Pep Boys will add its locations to Bridgestone’s nationwide 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.
The company also has more than 5,000 long-standing dealers and distributors in the United States.
“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. “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.”
