Bridgestone, Pep Boys Amend Terms to Merger Agreement
Dec. 14, 2015—On Friday, Pep Boys and Bridgestone Retail Operations LLC announced the amendment of its agreement and plan of merger, which was originally announced Oct. 26.
Bridgestone increased the offer price to acquire all the outstanding shares of common stock of Pep Boys from $15.00 per to share to $15.50 per share in cash, or approximately $863 million in aggregate equity value. The revised offer price provides approximately $28 million in additional cash consideration to Pep Boys shareholders.
The Pep Boys board of directors continues to unanimously recommend that Pep Boys shareholders accept Bridgestone’s offer. Pep Boys also announced that its board of directors no longer deems the proposal received on Dec. 8 from Icahn Enterprises to be a “Superior Proposal” as defined in the agreement and plan of merger.
The offer documents and Pep Boys’ solicitation/recommendation statement on Schedule 14D-9 will be amended to reflect the new terms. The tender offer will expire at 5 p.m on Jan. 4, unless extended.
"The joining of Bridgestone and Pep Boys combines the expertise of nearly 200 years and a proud heritage in the American automotive aftermarket industry," said T.J. Higgins, president, Consumer U.S. and Canada, Bridgestone Americas Tire Operations. "Both of our companies take immense pride in the skill of our employees, those in the bays and behind the counters of our stores. Bringing that technical talent together with our shared dedication to customer service will create a better, not just bigger, tire and automotive service retailer, and one that is positioned to best meet consumer needs."