(October 26, 2015) Tire giant Bridgestone America will purchase iconic auto repair chain Pep Boys - Manny, Moe and Jack, for $835 million, or $15 a share cash, it was announced today.

The all-cash deal, which represents a premium of 23% over the stock's closing price Friday, will be structured as a tender offer to close as soon as next year. At least a majority of shareholders need to agree to tender their shares at the price offered to complete the transaction.

"Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry," said Gary Garfield, CEO and president of Bridgestone Americas. "Our shared expertise and commitment to our customers and employees will help us build an even stronger organization."

Pep Boys, headquartered in Philadelphia, has been one of the nation's leading automotive aftermarket chains since 1921. With more than 7,500 service bays in more than 800 locations in 35 states and Puerto Rico, Pep Boys offers tires, maintenance and repair and parts and accessories.

The acquisition accelerates the global growth strategy of Bridgestone Corporation, the world's largest tire and rubber company and parent of Bridgestone Americas. Pep Boys will add approximately 800 locations to BSRO's nationwide network of 2,200 tire and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.

Along with these company-owned stores and Bridgestone's more than 5,000 long-standing dealers and distributors in the United States, Pep Boys' distribution network will help reach even more consumers with the products and services they want when they need them. The acquisition represents an immediate nationwide expansion of more than 35 percent for BSRO.

"We are excited to join the Bridgestone family of companies to become part of the world's largest company-owned tire and automotive service retail network," said Scott Sider, CEO of Pep Boys. "This transaction delivers a significant premium for Pep Boys' shareholders and offers new opportunities for our employees across a bigger business. We look forward to working with the Bridgestone team for a smooth and successful transition."