Pep Boys finally finds a buyer, and the stock is up 22%

Oil ChangeGetty Images/Duane ProkopPep Boys has a buyer in Bridgestone.

Car part supplier Bridgestone is buying out Pep Boys in a $US835 million deal, or $US15 per share. The deal takes the auto repair and service center off markets at a premium of more than 23%.

Pep Boys stock shot up 22% in premarket trading on the news.

It’s not the first time Pep Boys had considered the advances of a bidder in recent years. After a lengthy back-and-forth with Alec Gores’ private equity firm in 2012, the company and its prospective buyer abandoned their agreement, sending Pep Boys shares down sharply.

2015, however, has been a good year for Pep Boys investors. The stock was already up more than 20% by the time Bridgestone submitted a bid.

Pep Boys has more than 800 locations across 35 states. Bridgestone Americas, the buyer, is a subsidiary of Japan’s Bridgestone; it is perhaps best known for tire brands including Firestone and Bridgestone.

JPMorgan was the advisor to Bridgestone on the transaction and Pep Boys received advice from Rothschild, according to a statement.

NOW WATCH: ‘The Art Of War’ holds the keys to success on Wall Street

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.