Bridgestone Americas has come back with an increased offer for The Pep Boys- Manny, Moe & Jack acquisition on Dec. 24. Following an increased offer by Carl Icahn’s Icahn Enterprises, Bridgestone agreed to pay $17 a share for Pep Boys in the eleventh hour.
This increase in bid from $15.50 to $17 a share adds approximately $84 million to the price of Pep Boys. The tiremaker will now pay roughly $947 million for the chain.
Don’t expect this bidding war to be over just yet. Prior to the most recent agreement between the tiremaker and Pep Boys, Carl Icahn said he’d continue to bib up to $18.10 a share for Pep Boys in a filing with the Security Exchange Commission.
For now Bridgestone’s hopes of owning Pep Boys are still alive. 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.
“Nearly a century ago, the founders of both our companies created what has become today’s automotive aftermarket retail model,” said Stu Crum, president of Bridgestone’s Retail Operations. “In addition to our long and successful histories in this industry, Pep Boys and Bridgestone share a common vision for the future – to continue to build upon this 100-year foundation to form an even stronger company, one that is renowned for its commitment to being the most trusted provider of automotive service in every neighborhood it serves.”
Bridgestone entered into an agreement in October to purchase Pep Boys for $15 a share. On Dec. 11, after Icahn’s first bid drove the price of Pep Boys up, Bridgestone agreed to acquire the auto parts company for $15.50 a share. Icahn made a second bid for the company on Dec. 18.
