BRDCY Bridgestone Corp (PK)

   (FROM THE WALL STREET JOURNAL 12/31/15) 
   By Tess Stynes 

Billionaire Carl Icahn won the bidding war for Pep Boys, striking a deal to buy the auto parts and repair chain for about $1 billion.

The deal with Icahn Enterprises L.P., the activist investor's publicly traded company, comes a day after the other party in the fight, Japanese tire maker Bridgestone Corp., said it wouldn't counter Mr. Icahn's latest bid.

On Wednesday, Pep Boys -- whose full company name is Pep Boys - Manny Moe & Jack -- said it had pulled the plug on its pending merger deal with Bridgestone and that Mr. Icahn's firm paid Bridgestone a $39.5 million deal-termination fee on Pep Boys' behalf.

The deal, for $18.50 a share, is expected to close in the first quarter of 2016. Shares of Pep Boys declined 2.9% to $18.39.

Mr. Icahn has been actively looking to buy a firm like Pep Boys to complement his company's portfolio. In June, Icahn Enterprises spent about $340 million to buy Auto Plus, the U.S. arm of Canadian parts distributor Uni-Select Inc.

Auto Plus has more than 270 locations that distribute auto parts to professional service dealers, and growth through acquisitions is part of its stated strategy.

The company distributes brands such as ACDelco auto parts and Valvoline motor oils, as well as private-label brands.

The auto-parts business contributed about $173 million in sales to Icahn Enterprises' top line during the third quarter.

Like other companies in the sector, Auto Plus has aimed to capitalize as consumers keep their cars longer and they last longer.

S&P Capital IQ recently said in a note that an increase in the number of older cars, as well as people driving more, bodes well for demand for the replacement-parts industry.

Icahn Enterprises also holds a majority stake in auto-parts maker and distributor Federal-Mogul Holdings Corp.

Mr. Icahn's firm reiterated Wednesday that it is continuing to have talks with other parties that participated in Pep Boys' review process about a possible deal for the company's services segment.

(END) Dow Jones Newswires

December 31, 2015 02:47 ET (07:47 GMT)

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