Mavis to buy Pep Boys from Icahn Enterprises for $700 million

Mavis Tire Express Services has struck a deal to buy Pep Boys from Icahn Enterprises for about $700 million in cash, giving one of North America’s biggest tire and auto-service chains a much larger national footprint. The agreement covers The Pep Boys–Manny, Moe & Jack Holding Corp. and nearly 800 Pep Boys locations now held through Icahn Automotive Group.[0]

The transaction would lift Mavis to more than 4,400 service centers across the U.S. and Canada, adding an established western U.S. presence to a company that already operates more than 3,600 owned and franchised locations. Icahn Enterprises will keep real estate previously transferred from Pep Boys, plus the AAMCO Transmissions and Precision Tune Auto Care businesses.tirebusiness

For Icahn Enterprises, the sale turns a 2016 purchase into cash while narrowing its auto-services exposure. Carl Icahn said the combined businesses should benefit from scale and Mavis’s industry experience, while Icahn Enterprises CEO Ted Papapostolou said Pep Boys had been strengthened over the past decade under IEP ownership.businesswire

For Mavis, the deal extends a consolidation push that has already brought Midas, NTB, Tire Kingdom, Brakes Plus and other banners into its network. Tire Review noted that no rebranding plans were disclosed, but the added store base and distribution network could sharpen Mavis’s purchasing power, supplier relationships and competitive position against independent dealers.aftermarketnews

The terms still leave execution risk. The companies expect the deal to close in the coming months, subject to customary conditions and possible purchase-price adjustments. If completed, Pep Boys would move from an activist-controlled public holding company into a larger private auto-service platform backed by BayPine and other owners, with scale becoming the main strategic bet.tirereview