Pep Boys Agrees to $947M Bid From Bridgestone
Bridgestone will buy Pep Boys for $947 million, shunning a competing bid from investor Carl Icahn, to complete its purchase of the auto parts chain, Bloomberg reported (via Automotive News).
The bidding between Icahn and Bridgestone began in October when the auto parts chain shunned a $800 million price from Icahn to agree to an $835 million bid from the Japanese tire giant. Icahn raised his bid first to $863 million, then up to up to $1 billion for the chain, but Pep Boys ultimately decided the $947 million offer from Bridgestone was a better deal.
The last-minute bid for the chain would create the world’s largest chain of 3,000 stores, including Bridgestone’s Tires Plus, Firestone Complete Auto Care, Hibdon Tires Plus and Wheel Works stores.
“We’re happy that we have materially enhanced value for all shareholders,” Icahn told Bloomberg. “Merry Christmas to all of them.
“We cannot understand the actions of the directors in that they know we were willing to offer a lot more than $17,” he added.
Icahn sparked a bidding war for the auto parts chain — which includes 800 stores — earlier this year in an effort to consolidate the franchise with Auto Plus, a franchise he owns as well.
Bridgestone had up until Dec. 24 to counter Icahn’s bid. It’s unclear when the sale may be finalized for the chain.
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Agreed. Feels like a larger version of the Walmart automotive section without the benefit of low prices. Always my source of last resort.
When I have old car with issues, I go to pepboys. Their mechanics are clueless on how to find an issue and they pass inspection. But they would call you and tell that your brakes fail the inspection. You take your micrometer and go there, show into their face that your brakes are fine. Now. They selling synthetic oil for something like $50 when Walmart around the cornet has same bottles for $25. do they really understand the issue- obviously - not
They'll have a full suite of crappy tire and auto parts stores now...I avoid Pep Boys, Firestone et al like the plague. Pep Boys is the lowest common denominator. Local or regional chains like Dunn Tire etc are the places to go because they have enough business and experience to have quality alignment techs, decent tire guys, etc. For tools and hardware, Pep Boys is like Harbor Freight WITHOUT the good pricing...
You'll need to update this story. Bridgestone is out, Icahn is doing the deal. http://www.bloomberg.com/news/articles/2015-12-29/bridgestone-declines-to-raise-bid-for-pep-boys-after-icahn-offer