Bridgestone Americas has upped its offer to purchase fellow auto service chain Pep Boys to approximately $863 million in cash. Pep Boys has accepted the offer. The deal will add more than 800 locations to the Bridgestone network of 2,200 service centers, and will accelerate the growth strategy of the brand, which already includes the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brands.
Bridgestone first agreed to buy Pep Boys for approximately $835 million in cash, or $15 per share, in October 2015. However, activist investor Carl Icahn made a higher offer of $15.50 per share, with the retailer acknowledging that Icahn’s offer was “superior” to Bridgestone’s.
Upon receiving Icahn’s offer, Pep Boys delivered a notice to Bridgestone indicating that it had until 5 pm EST, Dec. 11, 2015, to increase its offer. When Bridgestone matched the offer, Pep Boys announced that its Board of Directors no longer deemed the proposal “superior” as defined in the Agreement and Plan of Merger between the companies.
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“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 of the Consumer U.S. and Canada division at 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.”
