Pep Boys says no new purchase offers surface

Pep Boys says no new purchase offers surfaced; buyout by The Gores Group to go ahead in 2Q

Associated Press

PHILADELPHIA (AP) -- The Pep Boys auto parts chain said Friday it received no new acquisition proposals during a solicitation period that ended this week, clearing the way for it to be taken private by The Gores Group.

Under the terms of its Jan. 30 agreement with The Gores Group, a Los Angeles investment firm, Pep Boys had through this Wednesday to find a better deal. The company said its financial adviser, BofA Merrill Lynch, contacted potential acquirers but came up with no alternative offers.

Now that the "go-shop" period is over, Pep Boys said both sides expect to complete the transaction during the second quarter.

The Gores Group, through its affiliates Auto Acquisition Co. LLC and Auto Mergersub Inc., agreed to a purchase price of about $791 million, based on its offers of $15 per share.

The Pep Boys — Manny, Moe & Jack, which is based in Philadelphia, has more than 700 U.S. locations in 35 states and Puerto Rico.

It was created in 1921 with Naval buddies and original Pep Boys: Emanuel "Manny" Rosenfeld, Maurice "Moe" Strauss, Moe Radavitz and Graham "Jack" Jackson.

Shares in Pep Boys fell 9 cents to $14.90 in after-hours trading Friday, after closing the regular session down 4 cents at $14.99.

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