Pep Boys (NYSE:PBY), the leading automotive parts store in the country, is being bought by The Gores Group for $1 billion.
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The Gore Group will purchase all outstanding shares of the stock for $15, which is a 24% premium on the current stock value. Not surprisingly, the stock is up 24% pre-market. The $15.00 share price also represents a 36% increase in the volume weighted average of Pep Boys over the past 30 days.
The purchase by Gores Group of Pep Boys is expected to be completed by the end of the second quarter of this year. At that point, Pep Boys will no longer trade on the New York Stock Exchange.
Ryan Wald, Managing Director of Mergers & Acquisitions at The Gores Group, made the following statement: “For over 90 years, Pep Boys has been the leading automotive service and retail chain and we look forward to supporting the Company’s continued growth and expansion with our substantial equity resources.”