NEW YORK - Tire and auto service company Bridgestone Corp. is buying car parts and repair company Pep Boys (PBY) for $835 million.
The offer involves $15 per share in cash and marks a 21 percent premium to Pep Boys' closing stock price on Friday. The deal is expected to close in the beginning of 2016 and will add 800 locations to Bridgestone's nationwide network of 2,200 tire and automotive service centers.
The deal comes months after Pep Boys-Manny, Moe & Jack's president and CEO resigned as the speculation built over whether the company was considering a sale. Tokyo-based Bridgestone Corp. said the move will help accelerate its global growth strategy.
"Our shared expertise and commitment to our customers and employees will help us build an even stronger organization," Gary Garfield, CEO and president of Bridgestone America, which is based in Nashville, Tennessee, said in a statement.
Philadelphia-based Pep Boys had been reviewing options to help boost shareholder value since June. The current deal helps to achieve that goal, said CEO Scott Sider.
Pep Boys shares rose $2.84, or 23.3 percent, to $14.99 in afternoon trading.