Pep Boys Inc.: Sell After Stock Advances 16.2% On Takeover Speculation That Lacks Substance
Transcend Event Driven Research
Transcend Event Driven Research
Pep Boys: From Buyout Bust To Bargain Buy
Dec. 30, 2015, 9:34 AM
- Icahn Enterprises (IEP) and Pep Boys (PBY -2.8%) formally announce their $1.031B merger.
- The transaction struck at $18.50 per share is expected to close in Q1 of 2016.
- Bridgestone (OTCPK:BRDCY, OTC:BRDCF) will take in a termination fee of $39.5M after bowing out.
- Previously: Bridgestone won't counter Icahn's latest Pep Boys offer (Dec. 29 2015)
Dec. 29, 2015, 6:09 PM
- It looks like Carl Icahn has won the Pep Boys (NYSE:PBY) bidding war: Bridgestone (OTCPK:BRDCY) says it won't counter Icahn Enterprises' (NASDAQ:IEP) $18.50/share offer for the auto repair shop chain. The offer, issued yesterday, topped a prior $17/share offer from Bridgestone.
- PBY -2.7% after hours to $18.43.
Dec. 28, 2015, 4:45 PM| Dec. 28, 2015, 4:45 PM | 10 Comments
Dec. 24, 2015, 7:35 PM
- Pep Boys (NYSE:PBY) says it agrees to a new takeover offer from Bridgestone (OTCPK:BRDCY) that values the company at $947M and no longer deems the proposal received from Icahn Enterprises (NASDAQ:IEP) a "superior proposal."
- PBY says Bridgestone will pay $17/share, with the announcement coming just before a 5 p.m. ET deadline to match or exceed Icahn’s $16.50/share offer; Icahn said yesterday he would pay $0.10/share more than any Bridgestone offer up to $18.10 under a "ratchet" structure.
- PBY also says the breakup fee in the revised Bridgestone deal has been increased to $39.5M from $35M.
- Icahn says of today's offer: "We cannot understand the actions of the directors in that they know we were willing to offer a lot more than $17."
- Earlier: Pep Boys breakup is likely scenario, analyst says
Dec. 24, 2015, 10:02 AM
- Pep Boys' (PBY -0.2%) bidding process will continue into the new year, culminating with a breakup of the service and retail operations and Monro Muffler (MNRO -0.5%) or O'Reilly Auto Parts (ORLY -0.1%) as potential buyers, Sterne Agee CRT analyst Ali Faghri says, adding that a deal with either company would be a positive catalyst since both have strong track records of acquisition integration.
- Faghri says an Icahn Enterprises (IEP -0.1%) acquisition of PBY likely would result in a sale of the service operations, with MNRO as a potential buyer; should Bridgestone prevail, PBY's retail business would be viewed as non-core and the ~560 stores would be sold, with ORLY the mostly likely buyer in this scenario.
- At an $18.10 takeout price, the analyst says the current deal valuation of ~12.5x TTM EBITDA shows the strength of the auto aftermarket industry, justifying MNRO's premium valuation (~14x 2016 EBITDA) and underscoring the discount at which Advanced Auto Parts (AAP +0.1%) trades (~9x 2016 EBITDA).
Dec. 23, 2015, 12:19 PM
- The bidding war continues: The Nikkei reports Bridgestone (OTCPK:BRDCY) has decided to once more up its offer for Pep Boys (PBY +2.7%). No price has been given.
- The news comes shortly after Icahn Enterprises announced it would pay $0.10/share more than any Bridgestone offer up to $18.10/share. Pep Boys currently trades at $17.35.
- Prior Pep Boys coverage
Dec. 12, 2015, 10:15 AM
- Pep Boys (NYSE:PBY) changed course again by accepting a $15.50 per share offer from Bridgestone (OTCPK:BRDCY, OTC:BRDCF) that matched an offer from Carl Icahn's organization.
- The deal price works out to around $863M.
- An acquisition of Pep Boys would give Bridgestone a significant increase in its presence in North America.
- Pep Boys closed at $16.34 on Friday indicating some traders think the drama isn't quite over yet.
Dec. 8, 2015, 9:02 AM
- The board of directors at Pep Boys (NYSE:PBY) expects a "superior" offer from Bridgestone (OTCPK:BRDCY, OTC:BRDCF) after Carl Icahn and his affiliates came in with a $15.50 per share bid yesterday for the company.
- The company is effectively passing on the current Icahn offer while it waits for the competition to play out.
- PBY trades right at $16 in premarket trading.
- Previously: 52-week high for Pep Boys after Icahn action (Dec. 07 2015)
- Previously: Icahn on the hunt for Pep Boys with offer over Bridgestone's (Dec. 07 2015)
Oct. 26, 2015, 8:52 AM
- The all-cash deal works out to $15 per share for Pep Boys (NYSE:PBY), 23% above Friday's close of $12.15. It's also 62% higher than the stock price on May 9, when speculation about a purchase first began.
- The deal is expected to close early next year.
- PBY +22.65% to $14.89 premarket.
May 19, 2015, 7:09 PM
- Pep Boys (NYSE:PBY) has leapt 20% in late trading as Golden Gate and other firms are reported to have approached the auto-parts retailer regarding a takeover, Dow Jones says.
- The after-hours price of $11.10 is the highest point the stock has reached since September.
- Updated: Pep Boys isn't working with an investment bank and isn't negotiating currently, the WSJ reports. It's also not clear the company wants to sell. A 2012 takeover attempt by Gores Group collapsed after Pep Boys logged poor results.
Sep. 6, 2013, 5:14 PM
- Pep Boys (PBY -1.8%) acquires 17 Discount Tire Centers in the greater Los Angeles market from AKH Company. They will re-open on Sept. 12 as Pep Boys locations.
Jan. 30, 2012, 8:12 AM
Automotive aftermarket chain Pep Boys (PBY) is being taken private by The Gores Group for $1B, a 24% premium to its Friday close. Shares +24.25% premarket. (PR)| Jan. 30, 2012, 8:12 AM
Pep Boys - Manny Moe & Jack together with its subsidiaries offers automotive repair & maintenance services and sells automotive tires, parts and accessories through a chain of stores.
Industry: Auto Parts Stores
Country: United States
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