Precision Auto Care, Inc. (OTCQX: PACI) operates as the world’s leading auto care franchise centers, with 316 locations as of May 2017. Shares of the car care company are surging during afternoon trading on Friday, June 2, 2017. Over the past month, Precision Auto Care, Inc. has seen average daily volume of 1,330 shares. However, volume of 236,211 shares or dollar volume of $366,127, has already exchanged hands on Friday.
Shares of Precision Auto Care, Inc. are jumping today, after the company announced it has agreed to be acquired by Icahn Automotive Group, LLC, a subsidiary of Icahn Enterprises, L.P. (NASDAQ: IEP). Under the terms of the agreement, Icahn Enterprises, L.P. will provide Precision Auto Care, Inc. and its shareholders with $37 million in compensation for the deal, but will be adjusted based on net working capital, and other closing costs. Here is the full press release detailing of the acquisition:
Precision Auto Care, Inc. Press Release:
Leesburg, VA – June 2, 2017 – Precision Auto Care, Inc. (OTCQX: PACI) (the “Company”) announced that it has entered into a definitive agreement to be acquired by Icahn Automotive Group LLC, a wholly-owned subsidiary of Icahn Enterprises L.P. (NASDAQ: IEP).
Pursuant to the terms of an Agreement and Plan of Merger, Icahn Enterprises L.P. will offer shareholders of the Company total merger compensation of $37 million to be adjusted at closing to reflect net working capital and reduced by certain closing costs and claims against a $4.5 million escrow account. Closing will occur immediately after a special shareholder meeting to ratify the merger, or as soon as practicable thereafter.
“The acquisition of Precision Auto Care, with more than 250 corporate-owned and franchised Precision Tune service locations in the United States, is the next step in building out our national automotive service network,” said Daniel A. Ninivaggi, CEO of Icahn Automotive Group LLC. “Coupled with our existing footprint of more than 1,000 corporate- owned locations, as well as our in-house automotive parts and tire distribution capabilities, we are uniquely positioned to provide high-quality parts, tires and services to our customers at the most competitive price.”
The Company has been in business for more than 40 years, has service locations in 26 states, with concentrations in Georgia, North Carolina and South Carolina.
“These full-service shops will continue to operate as Precision Tune Auto Care locations and will be led by Robert Falconi, who will remain CEO of Precision Auto Care,” said Ninivaggi. “We are pleased to welcome a number of strong independent franchisees to our organization. I would like to thank the Precision Tune Auto Care franchisees, particularly the Grimaud and Allbert families, for their support. We look forward to working with these business owners and Robert to grow the Precision brand.”
Precision Auto Care, Inc.
Precision Auto Care Enters Into Definitive Agreement Page 2
Robert Falconi | 703-777-9095 | email@example.com
About Precision Auto Care, Inc.
Precision Auto Care, Inc.’s affiliate, Precision Franchising LLC, is one of the world’s leading franchisors of auto care centers, with 316 operating centers as of May 3, 2017. The Company franchises Precision Tune Auto Care centers around the world.
About Icahn Automotive Group LLC
Caution Concerning Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words of similar meaning. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.