Bridgestone Americas has increased its offer to acquire The Pep Boys- Manny, Moe & Jack to $15.50 a share. This is $28 million more than its initial cash offer of $835 million.
Bridgestone was forced to increase its offer or walk away from the Pep Boys deal after billionaire investor Carl Icahn’s Icahn Enterprises offered to pay $15.50 for the parts company.
As a result of the increased offer, the Pep Boys board of directors continues to unanimously recommend that Pep Boys shareholders accept Bridgestone Americas tender offer. Additionally, the board no longer deems the proposal received from Icahn as a “superior proposal” as defined in its original agreement with Bridgestone, the company said.
“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 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.”
The acquisition of Pep Boys accelerates Bridgestone Corp.’s global growth. The purchase will add approximately 800 locations to Bridgestone Retail Operations’ nationwide network. Currently, BSRO operates approximately 2,200 tire and automotive service centers under Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brands.
Bridgestone entered into an agreement in October to purchase Pep Boys for $15 a share.