WASHINGTON (AP) – Pep Boys has agreed to be acquired by Bridgestone for $863 million in cash after the tires and auto service company sweetened its offer following a bid from Carl Icahn's investment firm.
Bridgestone and Pep Boys said late Friday that the new offer amounts to $15.50 for each Pep Boys share, an increase from its previous offer of $15 per share.
Pep Boys' board of directors is unanimously recommending that the company's shareholders accept the offer.
The company said that its board no longer sees Icahn's $837.4 million buyout offer as a superior proposal.
Pep Boys – Manny, Moe & Jack, based in Philadelphia, has about 800 locations around the country that sells auto parts and repairs vehicles. Bridgestone Corp. is based in Tokyo.
