Bridgestone agrees to buy Pep Boys retail chain for $835M

The U.S. subsidiary of Japanese tire company Bridgestone agreed Monday to buy the Pep Boys (NYSE: PBY) retail chain for $15 per share – valuing the company at $835 million.

The offer is roughly 23 percent higher than Pep Boys’ closing price of $12.15 per share at the market’s close Friday, and 62 percent higher than $9.25 per share on May 19 when the sale was first speculated.

The deal would add 800 of Philadelphia-based Pep Boys’ auto parts and maintenance shops to Bridgestone’s 2,200 tire centers across the U.S. A statement released by the companies said the merger would create the largest automotive service chain.

According to Bloomberg Business, Pep Boys’ shares jumped as much as 23 percent to $14.93 in early trading Monday.

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