Oct. 26--Japanese tire giant Bridgestone's Bloomingdale-based retail business is buying Pep Boys auto parts and maintenance stores in an $835 million deal, it announced Monday.
The deal will allow Bridgestone to significantly expand the number of locations that sell its tires.
Pep Boys has 800 locations nationwide, which will in the new year join with 2,200 tire and service centers already run by Bridgestone.
Bridgestone Retail Operations already runs maintenance centers under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.
It agreed to pay $15 per share for Pep Boys, a 23 percent premium over Pep Boys' Friday closing price of $12.15 a share and a 62 percent premium over the price Pep Boys stock commanded in May when rumors of the deal first broke.
"Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry," Gary Garfield, CEO and president of Bridgestone Americas, said in a news release. "Our shared expertise and commitment to our customers and employees will help us build an even stronger organization."
Philadelphia-based Pep Boys -- founded by Emanuel "Manny" Rosenfeld, Maurice L. "Moe" Strauss, W. Graham "Jack" Jackson, and Moe Radavitz -- was founded in 1921 and first came to the Chicago area in 1993. It currently has 37 stores in the Chicago area.
kjanssen@tribpub.com
