Pep Boys – Manny, Moe & Jack (NYSE: PBY) announced that it has agreed to be acquired by Bridgestone to the tune of $15 per share in an all-cash transaction, totaling $835 million. The transaction is structured as a tender offer, at a 23% premium from Friday’s closing price.
The transaction is expected to close in the beginning of 2016, and it has been unanimously approved by the boards of both Bridgestone and Pep Boys.
For some background: Pep Boys is headquartered in Philadelphia and has been one of the nation’s leading automotive aftermarket chains since 1921. The company has over 7,500 service bays in more than 800 locations in 35 states and Puerto Rico. The company offers tires, maintenance and repair and parts and accessories.
Ultimately, Bridgestone is looking to accelerate its global growth strategy. Pep Boys will add about 800 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.
Scott Sider, CEO of Pep Boys, commented on the merger agreement:
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.
Looking at the technicals, the 50-day moving average is about $11.92, making the tender offer valued at roughly a 25% premium.
Shares of Pep Boys were up 23.2% to $14.97 Monday morning. The consensus analyst price target is $13.50, and the 52-week trading range is $8.00 to $12.94.
ALSO READ: How Berkshire Hathaway Escaped Warren Buffett Stock Picks This Week
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
