PISCATAWAY, NJ – On December 24, tire maker Bridgestone Americas, Inc. and Pep Boys-Manny, Moe & Jack announced that they have amended the original agreement and plan of merger from October 26, 2015.
Nashville, Tennessee-based Bridgestone currently operates a nationwide network of 2,200 tire and automotive service centers including 43 Firestone Complete Auto Care locations in New Jersey. Pep Boys has over 800 Supercenters and Service & Tire Centers nationally, including locations in Piscataway, East Brunswick, Edison, and Bridgewater.
Bridgestone has increased its offer to buy control of Pep Boys from $15.50 to $17.00 per share in cash which will provide “approximately $84 million in additional cash consideration to Pep Boys shareholders.”
Bridgestone’s increased cash offer was in response to Icahn Enterprises L.P.’s increase in its bid for Pep Boys which was as high as $18.10 a share. Icahn Enterprises owns 12.1 percent of Pep Boys’ stock.
However, Pep Boys announced that its board of directors no longer deemed the proposal received from Icahn Enterprises to acquire the company to be a "superior proposal" and continued to recommend that shareholders accept Bridgestone’s offer.
“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 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’s latest offer to buy control of Pep Boys is set to expire at midnight, EST, on January 12.