Posted on 10/26/2015 9:56:36 AM PDT by grimalkin
Japanese tire maker Bridgestone Corp (5108.T) said it would buy auto parts retailer Pep Boys-Manny, Moe & Jack (PBY.N) for $835 million to expand its retail presence in the United States.
The deal will boost Bridgestone's retail network by more than a third in the United States, the company said.
Bridgestone operates a chain of auto care and tire stores in the United States through its Bridgestone Retail Operations (BSRO) unit.
"Bridgestone is looking to expand its market share in services and tires ... it's a little harder to understand what they might do with (Pep Boys') retail operations but they'll come up with a plan for it," Jefferies analyst Bret Jordan said, adding that it was unlikely the company would get rival bids from strategic buyers.
Bridgestone's U.S. business accounts for nearly half of its total sales, according to Thomson Reuters data.
The company's $15-per-share cash offer represents a premium of 23.5 percent to Pep Boys' Friday closing. Pep-Boys' shares jumped nearly 23.3 percent to $14.98 in morning trading.
(Excerpt) Read more at reuters.com ...
I stopped to help a guy who’s car had overheated...it had run out of coolant because the clamps to the heater core hadn’t been tightened down.
Oh yeah, he was driving it home from PB’s after having the head gaskets replaced there.
I worked in PB’s as a part timer many years ago...not a bad place then, got my parts at or near cost. But when they started adding scooters and other non-sensical, non-auto items to the inventory, I stopped patronizing them.
It’s sad when your Kumho gets dry rot......................
Bridgestone sold motorcycles here in the 1960’s. A friend had one of the 2-stroke street bikes.
“”Who owns KUMHO Tires?””
Kumho.
I used to have work done at PB years ago. We had a babysitter whose dad ran their garage. They did quality work while he was there. Only idiots there now.
Back in the early days of having a computer, hubby asked me to look up Pep Boys for a tire. I didn’t know what a Pep Boys was so typed in pet boys.... He hasn’t let me live that down.
I cannot find it but there must be a China angle in this story somewhere...
They wanted $1200 to change two rotors and put new brakes on a co-worker of my wife’s car, said it could be even more when they get it on the rack. My wife told me and I sent her friend to the mechanic/garage we use. She needed brakes on the front end, $100.
Manny, Moe and Gyp
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