Pep Boys Acquires Big 10
PHILADELPHIA – May 5, 2011 – The Pep Boys – Manny, Moe & Jack (NYSE: “PBY”), the nation's leading automotive aftermarket service and retail chain, today announced that it has acquired Big 10 Tires and Automotive, a trusted automotive service provider that has been serving customers in the Southeast for over 50 years. Big 10 currently operates 85 stores throughout Florida, Georgia and Alabama. Pep Boys was advised by Morgan Joseph TriArtisan LLC on the transaction.
“This acquisition furthers our stated strategy to grow through Service & Tire Centers,” said President & CEO Mike Odell. “We are very excited to add this many new Service & Tire Centers in a single transaction and to improve our market density in Orlando, Atlanta and the gulf area of Florida and Alabama."
During 2011, including the recently announced acquisition of seven stores in the Seattle-Tacoma market, Pep Boys has acquired 92 operating locations with $93 million in annual sales for an aggregate purchase price of $41 million. With the addition of these locations, Pep Boys now operates 147 Service & Tire Centers and is well ahead of the targeted total of 55 new stores for fiscal 2011.
About Pep Boys
Pep Boys now has approximately 7,000 service bays within over 700 stores located in 35 states and Puerto Rico. Along with its full-service vehicle maintenance and repair capabilities, the Company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling (800) PEP-BOYS or by visiting http://www.pepboys.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The word "guidance," "expect," "anticipate," "estimates," "forecasts" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include management's expectations regarding implementation of its long-term strategic plan, future financial performance, automotive aftermarket trends, levels of competition, business development activities, future capital expenditures, financing sources and availability and the effects of regulation and litigation. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. The Company's actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies, retail and commercial consumers' ability to spend, the health of the various sectors of the automotive aftermarket, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, the location and number of competitors' stores, product and labor costs and the additional factors described in the Company's filings with the SEC. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.