Bridgestone buying Pep Boys for about $835 million

AP News
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Posted: Oct 26, 2015 9:29 AM

NEW YORK (AP) — Tire and auto service company Bridgestone is buying auto parts and repair company Pep Boys in a deal that will help it gain a more dominant position.

The offer involves $15 per share in cash and marks a 21 percent premium to Pep Boys closing price on Friday. The companies valued the deal at $835 million.

It 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' president and CEO resigned as the speculation built over whether the company was considering a sale.