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The Pep Boys -- Manny, Moe & Jack
, the nation's leading
automotive aftermarket service and retail chain, today announced that its
Board of Directors has commenced a review of strategic alternatives to
enhance shareholder value, including a possible sale, merger or other form
of business combination or strategic transaction. The Board will be assisted
in its review by Rothschild Inc. as its financial advisor and Morgan, Lewis
& Bockius LLP as its legal advisor, each of whom has been advising the Board
in connection with the various inquiries that have been previously received
from third parties expressing an interest in a potential transaction. The
Board has determined that, in light of these inquiries, it is appropriate to
conduct a strategic review that evaluates Pep Boys' current long-term
business plan against a broad range of alternatives that have the potential
to enhance shareholder value.
"The Board is encouraged by the value-enhancing initiatives that our
management team has been pursuing and the progress that we have made in
growing comparable store sales, driving gross margin returns, reducing
expenses, shrinking inventory and unlocking the value of our real estate by
rationalizing our store base. We will continue to focus on these
value-enhancing opportunities under the leadership of Scott Sider, our new
CEO," said Chairman of the Board Bob Hotz. "However, in keeping with our
commitment to act in the best interests of all shareholders, and given that
a number of potential strategic and financial buyers have expressed an
interest in discussing a transaction with Pep Boys, we have determined that
it is prudent to explore strategic alternatives to determine the best
opportunities for enhancing shareholder value at this time."
There is no set timetable for the strategic review process. Further, Pep
Boys has not made a decision to pursue a transaction. There can be no
assurance that the process described above will result in the consummation
of any transaction or, if a transaction is undertaken, as to its terms,
structure or timing. Pep Boys does not intend to disclose or comment on
further developments regarding its review of possible strategic alternatives
unless and until the Board approves a specific action or it otherwise
concludes its review of strategic alternatives.
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