Oct. 26, 2015—Pep Boys has been bought by Bridgestone Americas Inc. for $835 million, according to a report by USA Today.
The all-cash deal, which represents a premium of 23 percent over the stock’s closing price Friday, will be be structured as a tender offer and could close as soon as next year, according to the report. In order for the transaction to be complete, a majority of shareholders need to agree to tender their shares at the price offered, $15 a share.
Shares of Pep Boys increased 22.8 percent to $14.98 a share in early trading, which suggests that investors think the tender offer will be a success.
“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, according to USA Today.
Sider was named Pep Boys’ CEO in June, right before plans to review strategic alternatives, including a potential sale, were announced.
Once the sale is complete, Pep Boys will be owned by Bridgestone Retail Operations, a unit of Bridgestone and its stock will no longer be traded on the New York Stock Exchange, according to the companies.
