Icahn buys Pep Boys for $1 billion

The bidding war is over for Pep Boys. Carl Icahn's Icahn Enterprises will buy the auto parts retailer for roughly $1 billion.

Pep Boys had been at the center of a bidding war with both Bridgestone and Icahn interested in purchasing the chain. Bridgestone had agreed to purchase Pep Boys in October and offered $15 per share, totaling close to $835 million. But Icahn wanted Pep Boys for its Auto Plus business.

"We have been actively looking for an excellent synergistic acquisition opportunity like Pep Boys, which has enormous growth potential, strong brand recognition, and well-known, best-in-class customer service," Icahn said in a statement.

Icahn's initial offer was valued at $863 million, and the investor already had a 12 percent stake in Pep Boys.

The deal is expected to close in early 2016. Icahn will pay a $39.5 million termination fee to Bridgestone.

For more:
-See this USA Today article

-See this Reuters story

Related stories:
It's on: A bidding war for Pep Boys
Pep Boys considering sale
Sports Authority names former Pep Boys exec as CMO
Pep Boys names CEO, Hertz veteran
Advance Auto Parts names former GE exec VP, supply chain

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