Carl Icahn buys Pep Boys . . .
Steve’s breakdown: . . . and last spring he bought Auto Plus. We suspect an ad review for at least one of these brands so start making thoses introductions.
PHILADELPHIA, PA: Activist investor Carl Icahn has prevailed in his fight to buy the Pep Boys – Manny, Mo & Jack.
Icahn’s Icahn Enterprises will buy the auto parts retailer for $18.50 per share. The all-cash deal is valued at approximately $1.03 billion.
The news came after Bridgestone Retail Operations, which operates about 2,200 tire and automotive centers in the United States and is a subsidiary of Tokyo-based Bridgestone Corp., announced it would not present a counter offer Icahn’s $18.50 per share offer. The tire company had topped Icahn’s two previous bids, but it declined to enter the third round.
Icahn has said he plans to combine the Philadelphia-based Pep Boys, which has more than 800 locations, with the Auto Plus chain, which he acquired earlier this year, according to Philly.com
“Since our acquisition of Auto Plus, our wholly-owned automotive aftermarket company, in June, we have been actively looking for an excellent synergistic acquisition opportunity like Pep Boys, which has enormous growth potential, strong brand recognition, and well-known, best-in-class customer service,” Icahn stated.
In a statement, Pep Boys CEO Scott Sider said the agreement delivers outstanding value to Pep Boys’ shareholders and allows Pep Boys to benefit from “the significant expertise and resources of Icahn Enterprises.”
“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,” Sider added. “I am confident in Pep Boys’ strong future growth prospects as an Icahn Enterprises portfolio company.”