PISCATAWAY, NJ – Carl Icahn’s investment firm, Icahn Enterprises has agreed to buy Pep Boys - Manny, Moe & Jack in an all-cash deal valued at $1.03 billion. This merger agreement has been unanimously approved by the Boards of Directors of both companies.
The tire maker Bridgestone Americas, Inc. recently increased their cash offer for a second time to buy Pep Boys but declined to counter Icahn's latest bid for the auto-parts chain that has over 800 Supercenters and Service & Tire Centers nationally, including locations in Piscataway, East Brunswick, Edison, and Bridgewater.
Because of Pep Boys' previous merger agreement with Bridgestone Retail Operations, LLC, Icahn Enterprises will pay Bridgestone a termination fee of $39.5 million.
"We are very pleased to have reached this agreement, which delivers outstanding value to Pep Boys' shareholders, provides new opportunities for Pep Boys employees and allows Pep Boys to benefit from the significant expertise and resources of Icahn Enterprises," said Scott Sider, CEO of Pep Boys.
"There are tremendous opportunities for Pep Boys and Auto Plus, a company that shares Pep Boys' unwavering commitment to best-in-class customer service and solutions. I am confident in Pep Boys' strong future growth prospects as an Icahn Enterprises portfolio company,” added Sider.
The “definitive merger agreement,” which is not conditioned on financing, is expected to close in the first quarter of 2016.