Pep Buys Buyout Finally Comes True (PBY)
The Pep Boys-Manny, Moe & Jack (NYSE: PBY) is being acquired. This should read “The long-lasting buyout rumors have finally come true” because this stock has been a rumored potential acquisition candidate for years. It has also been the subject…
The Pep Boys-Manny, Moe & Jack (NYSE: PBY) is being acquired. This should read “The long-lasting buyout rumors have finally come true” because this stock has been a rumored potential acquisition candidate for years. It has also been the subject of many rumors in that time.
The terms are as follows: The Gores Group will acquire all the outstanding common shares of Pep Boys for $15.00 per share in cash. This represents a premium of 24% percent over Pep Boys’ closing price of $12.08 on January 27, 2012 and a premium of 36% percent over Pep Boys’ volume weighted average closing price over the last 30 trading days.
The company’s board of directors has unanimously approved the merger agreement. It is further issuing the recommendation for existing shareholders to approve the transaction.
It is expected that Mike Odell, Pep Boys’ President & Chief Executive Officer and other members of the senior management team will continue in their roles with the Company after the completion of the transaction.
The $15.00 buyout compares to a 52-week range of $8.18 to $14.70.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
