Mavis Tire is acquiring Pep Boys from Icahn Enterprises for approximately $700 million in cash, marking a major shift in the automotive parts and service industry.
Pep Boys operates nearly 800 locations across the United States, offering services from oil changes to major repairs, as well as tire and battery sales.
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Deal Details
Under the agreement, Icahn will retain real estate previously transferred to Pep Boys, along with the AAMCO Transmissions and Precision Tune Auto Care businesses.
The acquisition will expand Mavis Tire's network to more than 4,400 service centers across Canada and the United States, including new markets in western states.
Mavis co-CEO David Sorbaro said, "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."
He added that Pep Boys has a loyal customer base, deep-rooted market presence, and a distribution network that will enhance Mavis's supply chain nationwide.
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Icahn originally purchased Pep Boys in 2016 for a reported $1 billion, making the current sale price appear as a bargain.
Broader Industry Shakeup
The Pep Boys sale follows a reported offer by O'Reilly Auto Parts to buy the auto parts unit of Genuine Parts Company for $10 billion, which would give O'Reilly ownership of rival NAPA Auto Parts.
Genuine Parts did not comment on the bid in its second-quarter earnings release, but CEO Will Stengel confirmed the company remains on track to complete its planned separation in the first quarter of 2027.
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Genuine Parts reported sales up 6% to $6.5 billion, though net income fell from $255 million to $228 million.
