The Pep Boys — Manny, Moe & Jack, a Philadelphia auto parts chain founded more than 90 years ago and that has seven Connecticut stores — has agreed to be taken private by investment firm The Gores Group for about $791 million, The Associated Press reports.
The $15 per share offer is a 24 percent premium to Pep Boys’ closing price Friday of $12.08.
The company’s shares surged $3.08, or 25.5 percent, to $15.16 in premarket trading Monday.
Pep Boys has more than 700 locations in 35 states and Puerto Rico.
The proposed acquisition appealed to The Gores Group in part because of Pep Boys brand recognition, as well as its moderate pricing.
With almost 53 million shares outstanding, the deal is worth about $791 million. The companies put the total enterprise value of the deal at approximately $1 billion.
Pep Boys’ board unanimously approved the buyout, which still needs approval from the company’s shareholders. Pep Boys said it has suspended its quarterly dividend in anticipation of the deal.
The transaction is expected to close in the fiscal second quarter. Once the acquisition is complete, Pep Boys stock will no longer trade on the New York Stock Exchange.
