Japan's Bridgestone to buy US auto parts retailer Pep Boys for $835 mn

Japanese tyre maker Bridgestone Corp today struck a deal to buy US auto parts retailer Pep Boys, owned by brothers - Manny Pep, Moe Pep and Jack Pep - for $835 million in cash in order to expand its presence in the country by more than 35 per cent.

Under the terms of the friendly deal, Bridgestone, the world's largest tyre manufacturer, is offering to pay $15-per-share, a premium of 23.5 per cent to Pep Boys' Friday closing price of $12.15.

Pep Boys, based in Philadelphia, is one of the leading automotive aftermarket chains in the US.

With more than 7,500 service bays in more than 800 locations in 35 states and Puerto Rico, Pep Boys offers tyres, maintenance and repair and parts and accessories.

The acquisition will add approximately 800 locations to Bridgestone's nationwide network of 2,200 tyre and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.

Along with Pep Boys' company-owned stores and Bridgestone's more than 5,000 dealers and distributors in the US, the acquisition will see an expansion of more than 35 per cent for Bridgestone in the US market.

"Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry,'' said Gary Garfield, CEO and president of Bridgestone Americas.

''We are excited to join the Bridgestone family of companies to become part of the world's largest company-owned tire and automotive service retail network,'' said Scott Sider, CEO of Pep Boys.

Founded in 1931, Tokyo-based Bridgestone is the world's largest tyre manufacturer, ahead of Michelin of France.

It has 141 production facilities in 24 countries, market cap of nearly $30 billion and posted net income of $4.52 billion in 2014 on revenues of $34.7 billion.