Icahn Wins Pep Boys Bidding War

Pep Boys - Manny Moe & Jack said it would be bought by billionaire Carl Icahn for about $1 billion, effectively ending a bidding fight with Bridgestone Corp. for the auto parts and repair chain.

Pep Boys said it has terminated its previous agreement to be acquired by Bridgestone and struck a deal with Icahn Enterprises L.P., the activist investor's publicly traded company. The move comes a day after Bridgestone said it wouldn't make a counteroffer to Mr. Icahn's latest bid of $18.50 a share.

The deal is expected to close in the first quarter of 2016. Pep Boys said that Icahn Enterprises, on behalf of Pep Boys, paid Bridgestone a $39.5 million termination fee.

Mr. Icahn said in prepared remarks Wednesday that Icahn Enterprises has been actively looking for an purchase like Pep Boys since its acquisition of Auto Plus.

Philadelphia-based Pep Boys put itself up for sale earlier this year and initially entered a takeover deal with Bridgestone in October.

Mr. Icahn, who held talks with the company earlier this year, went public with his bid at the beginning of December, and he and Bridgestone traded bids for most of the month.

Pep Boys was founded in 1921 and has more than 800 locations, according to its website. The company sells everything from tires to air fresheners. It has been ailing amid weakness in its tire business, and spending to try to boost sales.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

December 30, 2015 10:15 ET (15:15 GMT)

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