December 13, 2015
After being tempted by a counter-offer from billionaire investor Carl Icahn, Pep Boys has decided that it will go ahead with its planned merger with Bridgestone – but for a higher price.
The Philadelphia-based auto service company announced on Friday that it will sell itself to Bridgestone for $863 million, a $28 million increase over the previous deal.
The two companies announced they would merge in October for a price of $15 per share. Then Icahn stepped in, offering $15.50 per share. The investor owns around one-eighth of Pep Boys' stock and hopes that buying out the company could benefit his brand Auto Plus.
Manny, Moe and Jack decided that they didn't want to make the deal with Carl, but the company did convince Bridgestone to match Carl's offer.
Bridgestone is already the largest tire and rubber company in the world, but hopes to expand its American footprint with over 800 Pep Boys service centers. The company is based in Japan and has its American headquarters in Nashville, Tennessee.
Pep Boys' headquarters on West Allegheny Avenue will stay open "in the near term," as Philly.com reported, but the long-term fate of the offices has not been decided. The headquarters employ around 500 people.