Mavis Tire Buys Pep Boys for $700 Million, Expanding Auto Service Network

Deal Overview

On Tuesday, Icahn Enterprises revealed that it has agreed to offload Pep Boys to Mavis, a prominent independent tire and auto service firm, for $700 million. On Tuesday, Icahn Enterprises announced an agreement to transfer Pep Boys to Mavis for $700 million. Pep Boys runs nearly 800 outlets across the U.S., offering tires, repairs, oil changes, and standard maintenance services. This acquisition strengthens Mavis's presence, particularly in the western United States where Pep Boys is well established, and brings the combined company's total service center count to more than 4,400 in the U.S. and Canada.

Founded in 1921, Pep Boys has served drivers for a century, and this deal lets Mavis expand its Western market reach while leveraging the brand's strong customer trust. Mavis, which already operates Midas, Tire Kingdom, and Tuffy, continues its aggressive expansion strategy through this acquisition.

The transaction sees Mavis purchasing Pep Boys from Icahn Enterprises for $700 million. Icahn Enterprises will retain ownership of the Pep Boys properties and continue to operate other automotive service chains, such as Precision Tune Auto Care and AAMCO Transmissions. Icahn Enterprises initially purchased Pep Boys in 2016 for $1 billion in cash, taking the then-public company private.

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Company Statements

Mavis co-CEO David Sorbaro said, "Today's announcement marks a significant milestone as Mavis continues to execute its growth strategy. Pep Boys is one of the most well-respected names in the automotive aftermarket, and we look forward to welcoming it into the Mavis family of brands." Sorbaro added that the deal "will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers and create meaningful opportunities for employees."

Pep Boys CEO Joe Auriemma said, "For more than 100 years, Pep Boys has earned the trust of drivers across the country by delivering quality service with honesty and care," and noted that Mavis shares those values. He added that the combined network will give Pep Boys the "scale, footprint, and operational and technological strength to continue building on its legacy as it enters a new chapter of growth."

Carl Icahn, the chairman of Icahn Enterprises, expressed support for the deal, stating that they "believe that the combined businesses will benefit greatly from the inevitable economies of scale and from the great experience of the Mavis team in the industry."

Market Context

Mavis has been on an acquisition spree in recent years, adding chains like Midas and Tuffy to its portfolio. Through this acquisition, Mavis becomes a leading independent tire and service operator in North America, with a combined network of over 4,400 locations. The Western U.S. has been a key focus, as Pep Boys has a strong footprint there that complements Mavis's existing presence in the East and Midwest. This move also reflects a broader trend of consolidation in the automotive aftermarket, where scale and geographic diversity are becoming critical for competing with national chains and e-commerce rivals.

This deal also underscores Mavis's long-term strategy of consolidating independent auto service chains to compete with national retailers and online marketplaces. By integrating Pep Boys, Mavis gains access to a loyal customer base and a century-old brand reputation, potentially driving further growth in the highly competitive aftermarket sector.

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