Investment Group Buying Pep Boys

Pep Boys is being bought out by investment firm Gores Group in a deal worth an estimated $1 billion.

Under the terms of deal, the Los Angeles-based Gores Group will acquire all the outstanding common shares of Pep Boys for $15 per share in cash, a premium of 24% over Pep Boys’ Jan. 27 closing price of $12.08.

Pep Boys’ board of directors unanimously approved the acquisition and has recommended that Pep Boys’ shareholders approve the transaction.

“Partnering with The Gores Group delivers a significant premium for Pep Boys’ shareholders and ensures a strong foundation for us to continue our expansion,” said Mike Odell, Pep Boys’ president and CEO. “Our board firmly believes that this transaction is in the best interests of all of our stakeholders and delivers an ongoing commitment to excellence for our customers and employees.” The transaction is currently expected to close in the second fiscal quarter of 2012.

Following completion of the transaction, Pep Boys will become a privately held company and its stock will no longer trade on the New York Stock Exchange.

Ascot Supply Corporation, based in Newnan, Georgia, has selected Mark Paquette for the newly created position of vice president. In this position, Ascot Supply said Paquette will oversee the growth of the company's products, corporate profitability, manage marketing and advertising and assume many other responsibilities.

He will work under the direction of current President David Kessler and officially begin his new role on June 3. Paquette joined the tire and automotive industry in the early 1980s at his father's tire shop, and his contributions to Mohawk Rubber Sales were instrumental in the company's growth and eventual sale to Myers Tire Supply in 2021, according to Ascot Supply. Paquette eventually was given a promotion to the role of director of operations at Myers Tire Supply.