NASHVILLE, Tenn.—Bridgestone Americas Inc.'s revised $15.50 per-share offer for Pep Boys–Manny, Moe & Jack will cost the tire maker an additional $28 million, according to the company's amended tender offer.
Bridgestone increased its offer price to acquire all the outstanding shares of common stock of Philadelphia-based Pep Boys by 50 cents a share on Dec. 11 to counter an offer by Icahn Enterprises L.P.
Bridgestone, through the TAJ Acquisition Co. subsidiary set up by Bridgestone Retail Operations L.L.C. to effect the purchase, anticipates it will need about $895 million to complete the deal—$863 million to cover the purchase of 55.7 million outstanding shares of Pep Boys and the rest to cover various fees and expenses related to the offer.
Nashville-based Bridgestone said the Pep Boys board of directors “continues to unanimously recommend that Pep Boys shareholders accept its offer.” In Addition, Pep Boys' board no longer deems Icahn Enterprises's offer made on Dec. 8 to be a “superior proposal” as defined in the agreement and plan of merger.
Besides the price per share, no other terms changed in Bridgestone's offer, the amended document states.
In the document Bridgestone said it expects to be able to pay for the transaction “through available cash or advances by Bridgestone Americas Inc. Consummation of the offer is not subject to any financing condition.”
Worth noting: the closing price of a share of Pep Boys' stock on Dec. 11 was $16.34.
The new tender offer will expire Jan. 4 at 5 p.m. EST, unless extended, Bridgestone said. Shareholders who tendered their shares under the $15 per-share offer will receive the full $15.50 once the tender offer is closed, according to the tire maker.
Pep Boys operates more than 800 retail locations with 7,500-plus service bays in 35 states and Puerto Rico, including 234 tire-centric Service & Tire stores. Fiscal 2014 sales were $2.08 billion.
The acquisition will boost Bridgestone Americas' retail presence in the U.S. to more than 3,000 locations, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.