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Chain grows again

Pep Boys buys Big 10 stores

PHILADELPHIA — Automotive retail chain Pep Boys-Manny Moe & Jack is expanding its operations in the south by purchasing Big 10 Tire Stores, the company said Thursday.

The deal gives Pep Boys ownership of Big 10’s 85 stores in Florida, Georgia and Alabama, including major markets in Orlando and Atlanta.

“This acquisition furthers our stated strategy to grow through service and tire centers,” Pep Boys president and chief executive Mike Odell said in a statement. “We are very excited to add this many new service and tire centers in a single transaction and to improve our market density in Orlando, Atlanta and the gulf area of Florida and Alabama.”

Big 10 Tires started in May 1954 in Pensacola, Fla., expanding to more than 80 locations in the southeast.

Earlier this year, Pep Boys bought seven stores in the Seattle and Tacoma area in Washington state. Pep Boys spent $41 million on both purchases.

Odell told The Associated Press that Pep Boys decided in 2008 to start expanding its service and tire centers as it sought to expand its wider business.

“It’s been our stated growth strategy,” he said by phone from Mobile, Ala., where he has been meeting with Big 10 officials and store operators. “We see a huge opportunity for the automotive service industry to be consolidated. This gets things going at a faster pace and definitely is something that we’ve been working on for a while.”

He said the company was looking at other possible acquisitions in line with that strategy but did not name the companies.

Pep Boys stock climbed 37 cents, or 2.7 percent, $14.01 in late afternoon trading on the New York Stock Exchange.

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