Pep Boys-Manny Moe & Jack is looking for a buyer, the
auto-parts and services retailer said Tuesday.
The company said that in light of third-party interest in
conducting a potential transaction, its board has begun a strategic
review to consider "a broad range of alternatives" including a
sale, a merger or another form of a deal.
The news pushed shares 5% higher premarket to $12.77.
In May, The Wall Street Journal reported that private-equity
firm Golden Gate Capital and others had expressed interest in
acquiring Pep Boys. That comes as the company struggles with
weakness in its tire business and faces pressure from its largest
shareholder, Gamco Investors Inc.
Earlier this month Pep Boys agreed to add three new independent
directors to its board—a move to stave off a proxy fight with
Gamco, which owns 13.1% of shares outstanding.
Pep Boys replaced its chief executive two weeks ago, tapping
Scott Sider after Mike Odell resigned in September.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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