Iconic auto repair chain Pep Boys – Manny, Moe & Jack agreed to be bought by tire giant Bridgestone Americas Inc. for $835 million, or $15 a share cash.

The all-cash deal, which represents a premium of 23% over the stock’s closing price Friday, will be structured as a tender offer to close as soon as next year. At least a majority of shareholders need to agree to tender their shares at the price offered to complete the transaction.

The announcement follows pressure from activist investor Mario Gabelli for Pep Boys to consider a sale or other transaction that could boost the stock price. Gabelli’s Gamco is Pep Boys’ largest investor with a 12.7% stake, according to Morningstar.

Shares of Pep Boys jumped 22.8% to $14.98 a share in early trading, suggesting investors think the tender offer will be a success.

“We are excited to join the Bridgestone family of companies to become part of the world’s largest company-owned tire and automotive service retail network,” said Scott Sider, CEO of Pep Boys.

USA Today Article