Precision Auto Care, Inc. recently announced it has entered into a definitive agreement to be acquired by Icahn Automotive Group LLC.
Pursuant to the terms of an Agreement of Plan and 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 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.”
Precision Auto Care has been in business for more than 40 years and 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,” Ninivaggi said. “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.”