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That's up from the old record of 10.6 years in 2010, and it and continues a trend that dates to 1995, when the average age of a car was 8.4 years, according to a study of state vehicle registration data released earlier this month by the Southfield, Mich.-based Polk automotive research firm. The Gores Group deal for Pep Boys is worth about $791 million, based on the company's almost 53 million shares outstanding. The companies put the total enterprise value of the deal at approximately $1 billion. The agreement includes a provision, which allows Pep Boys to seek and receive alternative offers for a period of 45 days. Gores Group said that it has fully committed financing for the buyout, which is not subject to a financing condition. Wilson does not anticipate another firm making a bid for Pep Boys and pointed out that the deal with The Gores Group includes a $50 million reverse-termination fee if the acquisition doesn't close. The analyst raised Pep Boys' rating to "Market Perform" from "Underperform" and increased its price target to $15 from $9. Pep Boys said that Odell, as well as other senior managers, are expected to remain in their positions once the acquisitions closes. Pep Boys' board unanimously approved the acquisition, which still needs approval from the company's shareholders. Pep Boys said it has suspended its quarterly dividend in anticipation of the deal. The transaction is expected to close in the fiscal second quarter. Once the acquisition is complete, Pep Boys stock will no longer trade on the New York Stock Exchange.
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