The nation's leading automotive aftermarket service and retail chain reached a deal to be acquired by private-equity firm Gores Group for $15 a share, a 24% premium to Pep Boy's Friday closing price of $12.08.
"This news of the acquisition is a positive for Pep Boys which has been searching for a buyer for over seven years," Cabrera Capital Markets analyst Cid Wilson wrote in a report Monday. "While most of its competitors have seen their stocks appreciate over the last ten years, PBY shares has underperformed over the same period."Shares of Pep Boys hit a 52-week high of $15 on Monday. The stock's 52-week low of $8.18 was set on Aug. 9. TheStreet Ratings gives Pep Boys a C+ grade and rates it a hold. The stock has risen 35.41% year to date.
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