Bridgestone Retail Operations raised its offer to acquire Pep Boys to $17 per share in cash, or $947 million, after a New York City-based holding company one-upped Bridgestones original offer announced in October.
Bridgestones original offer was for $15 per share, or $835 million. Icahn Enterprises L.P. earlier this month made a higher cash offer of $15.50 per share. At that time, Pep Boys board of directors acknowledged the Icahn proposal would result in a superior proposal, but noted it hadnt changed its recommendation on the Bridgestone offer. Pep Boys board now says Icahns proposal is no longer a superior proposal, given Bridgestones increased offer, which the board continues to recommend shareholders accept.
According to Bridgestone, its tender offer was extended and will now expire at midnight New York City time on Jan. 12, unless further extended. In addition, the company said the termination fee payable by Pep Boys to Bridgestone under certain circumstances – including a termination to enter into a superior proposal by a third party – increased from $35 million to $39.5 million.
Philadelphia-based Pep Boys offers tires, maintenance and repair, and parts and accessories. It would add more than 800 locations in 35 states and Puerto Rico to Bridgestones nationwide network. According to its website, Pep Boys currently offers Pennzoil and Castrol brands when performing conventional motor oil changes, and Pennzoil, Castrol and Mobil brands when installing synthetic oil.
Bridgestone Retail Operations nationwide network of 2,200 company-owned tire and automotive service centers operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners. Bridgestone also has more than 5,000 dealers and distributors in the United States.
Icahn Enterprises is a diversified holding company engaged in 10 primary business segments, including automotive and energy.