The Pep Boys auto parts chain is being sold to Gores Group. (Business Wire )
Manny, Moe & Jack are going private: Aftermarket auto parts chain Pep Boys is selling itself to Los Angeles investment firm Gores Group for $791 million in cash.
Expansion-minded Pep Boys executives say the total enterprise value of the deal is about $1 billion. The $15-per-share price reflects a 24% premium on Pep Boys’ Friday closing price of $12.08.
Philadelphia-based Pep Boys, which has benefitted from a trend of drivers holding on to their existing cars rather than buying new ones, watched its stock jump 23% to nearly $15 during midday trading Monday.
Once the acquisition closes, expected by midsummer, Pep Boys will stop trading on the New York Stock Exchange. The 90-year-old company has already suspended its quarterly dividend.
Pep Boys said its executives would probably stay in their roles once the deal wraps up.
The Gores Group targeted Pep Boys for its more than 700 U.S. locations and its strong brand recognition. The Manny, Moe & Jack characters were modeled after three of the four original founders.
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