Billionaire investor Carl Icahn's Icahn Enterprises LP (IEP) has agreed to buy Pep Boys-Manny Moe & Jack (NYSE:PBY) for about $1 billion, hours after Bridgestone Corp quit the race for the U.S. auto parts retailer.
Continue Reading Below
Japanese tire maker Bridgestone said on Tuesday it would not raise its latest cash bid of $17 per share to counter Icahn's raised offer of $18.50 per share in cash.
Pep Boys shares fell about 3 percent in morning trading on Wednesday, while Icahn Enterprises shares declined about 1 percent. Pep Boys' retail auto parts business will be a perfect fit for Auto Plus, an auto spare parts company that Icahn Enterprises bought in June, Carl Icahn said in a joint statement.
Icahn Enterprises will also pay $39.5 million termination fee to Bridgestone. The deal is expected to close in the first quarter of 2016.
Pep Boys shares were trading at $18.37 and Icahn Enterprises shares were trading at $60.82.
Up to Tuesday's close, Pep Boys shares had risen about 93 percent this year, while Icahn Enterprises shares had fallen about 33.5 percent.