PHILADELPHIA, Jan. 30 (UPI) -- U.S. auto parts and repair chain Pep Boys said Monday it had agreed to sell itself to Gores Group for about $1 billion.
The Gores Group, an investment firm based in Los Angeles, will pay $15 per common share, a 24 percent premium above Pep Boys' closing price Friday and a premium of 36 percent above the Philadelphia company's average closing price over the past 30 trading days.
"Partnering with The Gores Group delivers a significant premium for Pep Boys' shareholders and ensures a strong foundation for us to continue our expansion," said Mike O'Dell, the chain's president and chief executive officer.
"Our board firmly believes that this transaction is in the best interests of all of our stakeholders and delivers an ongoing commitment to excellence for our customers and employees."
In 90 days, the company said, it will go private and take itself off the New York Stock Exchange
Pep Boys runs more than 7,000 service bays in more than 700 locations in 35 states and Puerto Rico.
Pep Boys has been around since 1921 when Emanuel "Manny" Rosenfeld, Maurice L. "Moe" Strauss, W. Graham "Jack" Jackson and Moe Radavitz opened the first store in Philadelphia.
