Bridgestone and Pep Boys amend merger agreement

Bridgestone and Pep Boys amend merger agreement

PHILADELPHIA —In the amended terms, Bridgestone Retail Operations LLC has increased its offer price per share to acquire all outstanding shares of Pep Boys’ common stock.

PHILADELPHIA — Bridgestone Americas Inc. and Pep Boys announced that Bridgestone Retail Operations LLC (BSRO), a wholly owned subsidiary of Bridgestone, and Pep Boys have agreed on amended terms in the merger agreement dated Oct. 26, according to a press release.

In the amended terms, stated the release, BSRO increased its offer price to acquire all outstanding shares of Pep Boys’ common stock from $15 per share to $15.50 per share in cash, “or approximately $863 million in aggregate equity value.”

The increase offer price per share generates around $28 million in additional cash consideration to shareholders of Pep Boys, reported the release.

According to the release, Pep Boys board of directors continues to recommend shareholders accept the BSRO offer and “tender their shares pursuant to that offer.”

The release also stated that Pep Boys board of directors no longer deems Icahn Enterprises L.P.’s  proposal, which was received Dec. 8 to acquire Pep Boys for $15.50 per share in cash, to be a “superior proposal,” as defined in the “agreement and plan of merger.”

“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 consumer U.S. and Canada for Bridgestone Americas Tire Operations, in the release. “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.”

BSRO currently has a nationwide network of 2,200 tire and auto service centers operating under the brand banners of Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works, noted the release.

You can find the entire release here.

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