Mavis Acquires Pep Boys for $700 Million
Icahn Enterprises announced on Tuesday that it has reached an agreement to sell Pep Boys to Mavis, the largest independent tire service provider in the U.S., for a total of $700 million.
Pep Boys operates around 800 locations across the country, offering various automotive services including tires, repairs, oil changes, and general maintenance.
This acquisition is set to enhance Mavis’ presence in both new and existing markets, especially in the Western United States where Pep Boys has a strong foothold. Following the deal, Mavis will expand its network to over 4,400 service centers throughout the U.S. and Canada.
“Today’s announcement marks an important milestone as Mavis continues to execute on its growth strategy,” stated David Sorbarro, Co-CEO of Mavis. He expressed excitement about Pep Boys being a respected name in the automotive aftermarket and their commitment to adding to Mavis’ portfolio.
Sorbarro mentioned that this partnership would lead to a more diverse platform, one capable of delivering reliable service and creating valuable opportunities for employees.
Pep Boys CEO Joe Auriemma commented on the long-standing trust Pep Boys has built with motorists over the last century, highlighting the shared values with Mavis. He noted that their combined strengths would enable Pep Boys to enhance its services and grow further.
Carl Icahn, chairman of Icahn Enterprises, also expressed optimism, stating that the merger would leverage economies of scale along with Mavis’ significant industry experience.
The agreement allows Icahn Enterprises to retain ownership of real estate linked to Pep Boys, along with the AAMCO Transmission and Precision Tune Auto Care businesses.
Pep Boys became part of Icahn Enterprises in 2016, following a $1 billion cash transaction that turned the chain private after being public previously.
Mavis, in addition to Pep Boys, already runs various automotive brands including Midas and Tire Kingdom. The completion of this deal is anticipated within the upcoming months.
