Pep Boys Auto, the automotive aftermarket service company that started in Philadelphia, agreed to sell to a Los Angeles based private-equity firm -- Gores Group -- for $ 791 million, according to the New York Times.
The entire deal, which includes Pep Boys $200 million debt, totals $1 billion according to the Business Journall.
Both parties confirmed the sale on Monday, January 30. The deal is expected to close by the end of the fiscal second quarter, March 31, and it will make Pep Boys a private company.
Later in the day, Reuters reported that the Pomerantz Law Firm will investigate the sale on behalf of investors:
The investigation concerns whether The Pep Boys directors are breaching their fiduciary duties by failing to adequately shop the Company and maximize shareholder value.
Under the Gores Group deal, shareholders would get $15 per share of common stock. At least one analyst had the company valued at $17 per share, according to Reuters.
Pep Boys is expected to retain its name.
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The company, known by its caricature logo of the three founders, Manny, Moe and Jack, was founded in Philadelphia in 1921.
