Mavis Tire to acquire iconic auto-service chain in $700M deal - Fox Business

What the report says

Fox Business reported that Icahn Enterprises has agreed to sell Pep Boys to Mavis in a transaction valued at $700 million. The agreement would add nearly 800 Pep Boys locations to Mavis, a major independent tire and automotive service provider, and would bring Mavis’ network to more than 4,400 service centers across the United States and Canada.

The deal is expected to strengthen Mavis’ reach in both existing and new markets, with particular emphasis on the western United States, where Pep Boys has a notable footprint. Pep Boys provides services such as tire replacement, repairs, oil changes and general maintenance, and has operated as a recognizable auto-service brand for more than a century.

Mavis co-CEO David Sorbaro described the acquisition as part of the company’s growth strategy, while Pep Boys CEO Joe Auriemma said the combination would give Pep Boys greater scale and operational support. Carl Icahn, chairman of Icahn Enterprises, said the businesses should benefit from scale and Mavis’ industry experience, according to the Fox Business report.

Icahn Enterprises will keep certain assets tied to Pep Boys, including real estate it acquired through the brand, as well as AAMCO Transmissions and Precision Tune Auto Care. Icahn Enterprises bought Pep Boys in 2016 in a $1 billion all-cash deal that took the chain private. Mavis already operates several auto-service brands, including Midas, Tire Kingdom and Tuffy. The transaction is expected to close in the coming months.