NASHVILLE—Three-and-a-half years after a planned acquisition deal fell apart, Manny, Moe & Jack have found a buyer. Nashville-based Bridgestone Americas Inc. and Philadelphia-based Pep Boys—Manny, Moe & Jack said Monday they had entered into a definitive merger agreement under which wholly owned subsidiary Bridgestone Retail Operations LLC would acquire the Pep Boys auto parts and service chain for approximately $835 million.

The all-cash deal for $15 per share represents a 23% premium over Pep Boys' closing price on Oct. 23, and a 62% premium on the company's per-share price of $9.25 on May 19. Share prices rose thereafter on market speculation about a possible sale, including a Wall Street Journal report that identified Golden Gate Capital as a potential buyer. Pep Boys announced on June 30 that its board was exploring strategic alternatives including a possible sale.

In January 2012, GlobeSt.com reported on an agreement which the 94-year-old retail operator signed with private equity firm the Gores Group to be taken private for approximately $800 million, a deal that gave the chain an enterprise value of about $1 billion. By May of that year, however, the deal was called off, after the buyer walked away amid a disappointing report of first-quarter results at Pep Boys' locations across 35 states and Puerto Rico.

The Pep Boys acquisition will add approximately 800 locations and 7,500 service bays to BSRO's nationwide network of 2,200 tire and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners. Bridgestone also has a network of more than 5,000 dealers and distributors across the US. Reportedly the merger will create the world's largest retail chain of its kind.

'Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry," says Gary Garfield, CEO and president of Bridgestone Americas. “Our shared expertise and commitment to our customers and employees will help us build an even stronger organization.”

J.P. Morgan Securities LLC is acting as the exclusive financial advisor to Bridgestone, while Jones Day is acting as the buyer's legal advisor. For Pep Boys, Rothschild is acting as the exclusive financial advisor and Morgan, Lewis & Bockius LLP is acting as legal advisor. The deal is expected to close in the beginning of 2016; Pep Boys will operate as a wholly owned subsidiary of BSRO and will no longer trade on the New York Stock Exchange.