$1B Pep Boys Buyout Sunk By Soft Sales

Law360, New York (May 30, 2012, 11:46 AM EDT) -- Pep Boys and its would-be private equity buyer The Gores Group LLC have called off their $1 billion deal after poor first-quarter sales at the auto supply chain, according to regulatory filings made late Tuesday.

Gores, which earlier this month asked for a 30-day extension to consider the company's “significant downturn," will pay Pep Boys $50 million in exchange for breaking up the deal.

The announcement came a day before shareholders were set to vote on the acquisition and ends a month of uncertainty about the...
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