Gores Group May Slam Brakes On $1B Pep Boys Buyout
Founded in 1921 by the "Pep Boys" -- Emanuel "Manny" Rosenfeld, Maurice "Moe" Strauss, Moe Radavitz and Graham "Jack" Jackson -- the company has more than 700 auto repair and parts stores in 35 states and Puerto Rico. The company competes against O'Reilly Automotive(ORLY) and Advanced Auto Parts(AAP) and Autozone (AZN) , among others in the automotive aftermarket.
Pep Boys' largest shareholder is North Run Capital Management with an over 8% stake. Other large holders include Glenhill Advisors, Dimensional Funds, River Road Asset Management andVanguard Group, each with stakes over 5%.
For the Gores Group, the move wasn't its first foray into the autos market. In May, the private-equity firm bought auto body company Sage Automotive Interiors for an undisclosed price, and in 2007 the company bought vehicle logistics specialist United Road Services for $110 million.
For more on Pep Boys' shares, see Whitney Tilson's T2 Partners portfolio. For more on Gores Group and its head Tom Gores, see why private equity buyers are circling sports franchises..
-- Written by Antoine Gara in New York