Pep Boys Stock Soars After Deal To Be Bought Out By Bridgestone

The Pep Boys--Manny, Moe & Jack's stock soared 22% in premarket trade Monday, after the auto parts retailer agreed to be acquired by Bridgestone Americas Inc. in a deal valued at $835 million in cash. As part of the deal, Bridgestone, which is the U.S. subsidiary of Tokyo-based Bridgestone Corp., will pay $15 for each Pep Boys share outstanding. That represents a 23% premium to Friday's closing price of $22.15, and would be the highest price seen in the stock since March 16, 2012. The deal is expected to close in the beginning of 2016. Pep Boys' stock has run up 24% year to date through Friday, while the S&P 500 has gained 0.8%.