Auto parts retailer The Pep Boys – Manny, Joe & Jack (NYSE: PBY) has agreed to be acquired by private equity firm The Gores Group for $1 billion cash, or $15/share. The price is a 24% premium over the closing price of the shares last Friday.

Pep Boys has been the weakest performer in the auto parts retail business for the past year. It’s share price has fallen by more than -13% in the past 12 months, while competitors Autozone Inc. (NYSE: AZO), Advance Auto Parts Inc. (NYSE: AAP), and O’Reilly Automotive Inc. (NASDAQ: ORLY) have risen by 38%, 17%, and 46%, respectively.

Under terms of the agreement, Pep Boys has a 45-day period in which it is free to seek other offers. The deal is expected to close in the second quarter.

Pep Boys has suspended its quarterly dividend and will file a quarterly report with the SEC, but has cancelled its conference call.

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