Pep Boys (PBY: 14.89, +2.81, +23.26%) penned an $804 million deal on Monday that will go private by the Gore Group in a transaction that will value the retail auto-parts and service chain at a 24% premium.

The Gores Group stated that Pep Boys CEO Michael Odell and other senior executives are expecting to stay on in their present roles following the transaction’s closing.

Pep Boys-Manny, Moe & Jack, based in Philadelphia, sells automotive services, tires, parts and other auto accessories. The company, founded in 1921, employed over 12,000 workers as of October 2011 and raked in $1.99 billion in revenue in its fiscal 2011.

Ryan Wald, mergers & acquisitions managing director at the Gores Group, said in a statement that for over 90 years, Pep Boys has been the leading automotive service and retail chain and they look forward to supporting the company’s continued growth and expansion with their substantial equity resources.

The Gores Group made an agreement to pay $15 a share for Pep Boys, representing a 24% increase from the company’s Friday close of $12.08. Maybe the private-equity firm believed Pep Boys shares were cheap as they had retreated almost 14% over the prior 12 months.

**********************************************

The Views and Opinions Expressed by the author are his or her opinions only and do not necessarily reflect those of this Web-Site or its agents, affiliates, officers, directors, staff, or contractors. The author at the time of this article did not own any shares or receive any consideration financial or otherwise from any company or person mentioned or referred to in the article.