) to review its strategic options, although the retailer had failed to sell itself in the past. "This is an operational improvement story with an underlying strong macro environment," said Avondale Partners analyst Bret Jordan in a previous interview with Bloomberg. "People are holding onto cars longer and driving more, so there's increased demand for repairs." The $791 million offer values Pep Boys at nearly 5 times earnings, which is lower than the 6.1 multiple that previous auto retailer acquisitions had been valued at over the past decade, according to Bloomberg data. The Pep Boys board approved the transaction, and recommended that shareholders tender their shares. The company also included in the agreement a 45-day period in which it could accept offers from other private equity firms. Pep Boys has benefitted from the recession, as the average age of a vehicle on the road is nearing 11 years. Many consumers have been afraid to take on large expenses such as a new vehicle purchase and consider it more cost effective to maintain their current vehicles. An increasing number of drivers are also looking to avoid the expensive premiums that dealerships charge for repairs and are attempting to service their vehicles themselves. The Gores Group stated that it has secured financing for the deal, and plans on keeping the current Pep Boys management team in their position once the deal closes. Pep Boys announced that they would suspend their dividend in anticipation of the deal, which should close in Pep Boys' fiscal second quarter. Pep Boys has been criticized by analysts in the past for failing to generate shareholder value. While this acquisition rewards investors for their patience, it remains to be seen whether the Gore Group's cash infusion will be able to drive Pep Boys expansion into new markets. Regardless of the results, Pep Boys seems poised to take advantage of the new frugal American consumer, who understands that cars do not need to be replaced every few years and can last for up to two decades if maintained properly.