Bridgestone buys Pep Boys

Bridgestone has agreed to purchase Pep Boys for approximately $835 million, as the tire company grows its service network.

Bridgestone already operates a network of auto care and tire stores in the United States, but the acquisition gives Bridgestone more than 800 locations and 7,500 service bays to grow its reach into the consumer market.

Philadelphia-based Pep Boys has struggled to profit in the automotive aftermarket industry, losing nearly $27 million in its recently completed fiscal year, but posted nearly $2 billion in sales.

"Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry," said Gary Garfield, president and CEO of Bridgestone Americas. "Our shared expertise and commitment to our customers and employees will help us build an even stronger organization."

In June, Pep Boys agreed to nominate three board members in order to avoid a proxy fight with shareholders and began reviewing strategic options to boost shareholder value, including a potential sale or merger. 

The deal is expected to close in early 2016.

For more:
-See the Bridgestone Americas press release

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