Icahn Enterprises Sells Pep Boys to Mavis for $700 Million
On Tuesday, Icahn Enterprises announced a deal to sell Pep Boys to Mavis, which is the largest independent tire service provider in the U.S., for $700 million.
Pep Boys operates around 800 locations across the country, offering a range of automotive services like tire sales, repairs, oil changes, and general maintenance.
This agreement allows Mavis to expand its footprint in both new and existing markets, especially in the Western U.S. where Pep Boys holds a strong presence, boosting Mavis’ total network to over 4,400 service centers across the U.S. and Canada.
David Sorbarro, Co-CEO of Mavis, said this deal marks a significant step forward in their growth strategy. He noted, “Pep Boys is one of the most respected brands in the automotive aftermarket, and we look forward to welcoming it to the Mavis family of brands.”
He further emphasized that this partnership “creates a stronger, more geographically diverse platform” that will allow them to provide better service to customers and generate more meaningful opportunities for employees.
Joe Auriemma, CEO of Pep Boys, explained that Pep Boys has built trust among motorists for over a century by focusing on quality service and integrity. He expressed confidence that Mavis shares those values and that their resources would help continue Pep Boys’ legacy as they enter a new growth phase.
Carl Icahn, chairman of Icahn Enterprises, welcomed the alliance, stating, “We believe our combined business will benefit greatly from the inevitable economies of scale and the Mavis team’s significant experience in the industry.”
As part of this agreement, Icahn Enterprises will keep ownership of the real estate from Pep Boys along with the AAMCO Transmission and Precision Tune Auto Care brands.
Pep Boys was taken private by Icahn Enterprises in 2016 through a $1 billion cash transaction after it had been a public company.
Mavis also operates various other automotive service brands including Midas, Tire Kingdom, and Taffy.
The transaction is anticipated to finalize in the upcoming months.
