Pep Boys -- Manny, Moe & Jack agreed to go private in an acquisition by Gores Group LLC valued at about $791 million after the auto-parts retailer’s previous attempts to sell itself were unsuccessful.
The cash offer of $15 a share is 24 percent higher than Pep Boys’ closing price on Jan. 27, the companies said today in a statement. Including debt, the deal is valued at $1 billion and is expected to be completed by the end of the fiscal second quarter of 2012, according to the statement.
The transaction is the largest in the auto-parts retailing sector since 2008, according to data compiled by Bloomberg. Pep Boys, founded in 1921, has more than 7,000 service bays in 700 locations across the U.S. Pep Boys halted efforts to sell itself last year after failing to attract high enough bids, two people with knowledge of the negotiations said in February.