Pep Boys (PBY $14.86 +2.77) announced that it has entered into a definitive merger agreement under which it will be acquired by The Gores Group. Total enterprise value of the transaction is approximately $1.0 billion.
Under the terms of the merger agreement, 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. Pep Boys' Board of Directors has unanimously approved the merger agreement and recommended that Pep Boys' shareholders approve the transact.






