Manny, Moe and Jack finally find a buyer

Japanese tire manufacturer Bridgestone is accelerating its growth plans in the United States by acquiring the Pep Boys auto parts chain, just as Americans are keeping their cars longer.



The Pep Boys – Manny, Moe & Jack Co. has entered into a definitive merger agreement with Bridgestone under which BSRO will acquire Pep Boys in an all-cash transaction for $15 per share, or approximately $835 million in aggregate equity value.



"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. "Our shared expertise and commitment to our customers and employees will help us build an even stronger organization."



Pep Boys, headquartered in Philadelphia, has more than 7,500 service bays in more than 800 locations in 35 states and Puerto Rico. The company lost $27 million in its most recent fiscal year, on $2 billion in sales.



The acquisition accelerates the global growth strategy of Bridgestone Corp. the world's largest tire and rubber company and parent of Bridgestone Americas. Pep Boys will add approximately 800 locations to BSRO's nationwide network of 2,200 tire and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.



Along with these company-owned stores and Bridgestone's more than 5,000 long-standing dealers and distributors in the United States, Pep Boys' distribution network will help reach even more consumers with the products and services they want when they need them. The acquisition represents an immediate nationwide expansion of more than 35% 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," said Scott Sider, CEO of Pep Boys. "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 transaction is expected to close in the beginning of 2016.