Pep Boys sells business to Bridgestone

Pep Boys to sell business to Bridgestone

PHILADELPHIA — Under the agreement, Bridgestone Retail Operations LLC will acquire Pep Boys in an all cash transaction for $15 per share, or around $835 million in aggregate equity value.

PHILADELPHIA — Bridgestone Americas Inc. announced that Pep Boys and Bridgestone Retail Operations LLC (BSRO), a wholly owned subsidiary of Bridgestone, have entered into a definitive merger agreement, according to a press release.

Under the agreement, BSRO will acquire Pep Boys in an all cash transaction for $15 per share, or around $835 million in aggregate equity value, stated the release.

This transaction represents “a premium of 23 percent over Pep Boys’ closing price of $12.15” on Oct. 23, reported the release, as well as a premium of 62 percent “over Pep Boys’ unaffected (prior to market speculation of a potential transaction) price of $9.25 on May 19.”

The release added that the transaction is structured as a tender offer.

“Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry,” said Gary Garfield, CEO and president of Bridgestone Americas, in the release. “Our shared expertise and commitment to our customers and employees will help us build an even stronger organization.”

Established in 1921 and headquartered in Philadelphia, continued the release, Pep Boys has more than 7,500 service bays in over 800 locations throughout 35 states and Puerto Rico, and offers auto parts and services.

This acquisition helps to accelerate Bridgestone Corporation’s global growth strategy, informed the release, and will add an additional, approximate 800 locations to BSRO’s network of 2,200 tire and auto service centers, which currently operate under the Firestone Complete Auto Care, Hibdon Tires Plus, Tires Plus and Wheel Works brands.

Furthermore, reported the release, this acquisition represents an “immediate nationwide expansion of more than 35 percent for BSRO.”

“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,” stated Scott Sider, CEO of Pep Boys, in the release. “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.”

The acquisition is expected to close early in 2016, noted the release.

You can find the release here.

You May Also Like

Mammoth Holdings opens Today’s Car Wash

HEWITT, Texas — This is the eighth site under the Today’s Car Wash brand and represents Mammoth’s goal of reaching 500 sites nationwide.

mammoth holdings logo

HEWITT, Texas — Mammoth Holdings LLC announced in a press release the recent opening of its newest location, Today's Car Wash in Hewitt, Texas, outside of Waco.

The new site aligns with Mammoth's dual growth strategy of developing greenfield locations while also acquiring existing brands.

"Customers in the Greater Waco area will be treated to state-of-the-art technology and second-to-none customer service for the best possible car wash," said Dave Hoffmann, chairman and CEO of Mammoth Holdings. "We are thrilled to expand our footprint and serve even more car owners in the state of Texas."

Metro Express Car Wash CEO’s influential recognition

BOISE, Idaho — Bill Martin was honored as a CEO of Influence for his 50 years of dedication and innovation in the carwash industry.

NYSCWA spring tour covers many bases

CLIFTON PARK, N.Y. — The New York State Car Wash Association spent a day touring three unique washes in New York.

Spotless Brands expands to start 2024

OAKBROOK TERRACE, Ill. — Spotless Brands sets aggressive growth with new locations open in 2024’s first quarter.

Summit Wash Holdings announces $200M+ growth investment 

PALM BEACH GARDENS, Fla. — The carwash company is committed to strategic growth opportunities in existing markets.

Other Posts

National Carwash Solutions announces new CCO

GRIMES, Iowa — The new NCS CCO will leverage extensive experience in engineered products markets to enhance sales and marketing strategies.

Navigating opportunities and challenges

The dynamic express carwash industry offers promising opportunities for entrepreneurs and investors amid growing consumer demand for convenient, eco-friendly automotive solutions.

Navigating opportunities and challenges
Mark VII Equipment new CEO

ARVADA, Colo. — Mark VII’s new CEO, Uwe Scharfy, took his position on May 1, bringing a wealth of knowledge and leadership to the company.

mark vii logo
IGL Coatings USA welcomes new leaders

SARALAND, Ala. — The company has made a transition in ownership and leadership, passing the reins to Mike Karlen and Dustin Jackson.

igl new leaders