Investment firm Gores Group acquires Pep Boys
Pep Boys - Manny, Moe & Jack has entered into a definitive merger agreement under which it will be acquired by investment firm The Gores Group.
Total enterprise value of the transaction is $1 billion. Under the terms of the merger agreement, The Gores Group will acquire all the outstanding common shares of Pep Boys for $15 per share in cash.
This represents a premium of 24% over Pep Boys’ closing price of $12.08 on Jan. 27, 2012. It is a premium of 36% over Pep Boys’ volume weighted average closing price over the last 30 trading days.
Pep Boys’ board of directors has unanimously approved the merger agreement and recommended that Pep Boys’ shareholders approve the transaction. It is expected that Mike Odell, Pep Boys’ president and chief executive officer and other members of the senior management team will continue in their roles with the company after the completion of the transaction.
“Partnering with The Gores Group delivers a significant premium for Pep Boys’ shareholders and ensures a strong foundation for us to continue our expansion,” says Odell. “Our board firmly believes that this transaction is in the best interests of all of our stakeholders and delivers an ongoing commitment to excellence for our customers and employees.”