Mavis Tire to Acquire Pep Boys in $700 Million Deal

Mavis Tire Supply has reached an agreement to acquire the automotive service chain Pep Boys for $700 million, Icahn Enterprises announced Tuesday.

Mavis, one of the nation's largest independent tire and service providers, plans to integrate Pep Boys' nearly 800 locations into its existing network.

The deal is expected to bolster Mavis's presence in new and existing markets, particularly in the western United States where Pep Boys has a significant footprint. Following the acquisition, Mavis's network will comprise over 4,400 service centers across the U.S. and Canada.

"Today's announcement marks a significant milestone as Mavis continues to execute its growth strategy," said Mavis co-CEO David Sorbaro. "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 combined entity will create a more geographically diverse platform with enhanced scale and capabilities to serve customers and offer opportunities for employees. Pep Boys CEO Joe Auriemma stated that Mavis shares Pep Boys' long-standing values of delivering quality service with honesty and care, and that the acquisition will provide the necessary scale and operational strength for Pep Boys to continue its growth.

Carl Icahn, chairman of Icahn Enterprises, expressed confidence in the deal, noting that the combined businesses will benefit from economies of scale and the Mavis team's industry experience.

Icahn Enterprises acquired Pep Boys in 2016 for $1 billion in an all-cash deal that took the auto service chain private. Under the terms of the new agreement, Icahn Enterprises will retain Pep Boys' real estate holdings, as well as the AAMCO Transmissions and Precision Tune Auto Care businesses.

Mavis operates other auto service brands including Midas, Tire Kingdom, and Tuffy. The transaction is anticipated to close in the coming months.