Icahn Enterprises has announced that it has reached an agreement to sell the Pep Boys auto service network to Mavis, one of the largest independent tyre and auto service providers in the United States. The transaction is valued at $700 million.
Pep Boys operates nearly 800 service centres across the United States, providing car repair, tyre replacement, oil changes and maintenance services. Once the deal is completed, the Mavis network will expand to more than 4,400 service centres in the United States and Canada, significantly strengthening the company's presence in the western United States, where Pep Boys has traditionally held a strong position.
Mavis co-chief executive David Sorbaro described the acquisition as an important milestone in delivering the company's growth strategy and noted that Pep Boys is one of the most recognisable brands in the auto service market. According to him, the combined business will have a broader geographic footprint and greater capacity to serve customers and develop its workforce.
Pep Boys chief executive Joe Auriemma stressed that over more than 100 years of operations the company has earned drivers' trust thanks to the quality of its service, and that working with Mavis will give it the necessary scale, network and technological capabilities for further growth.
As part of the deal, Icahn Enterprises will retain the real estate associated with Pep Boys, as well as the AAMCO Transmissions and Precision Tune Auto Care businesses. Pep Boys came under the control of Icahn Enterprises in 2016 following a buyout of all shares for $1 billion.
In addition to its own brand, Mavis also owns other auto service networks, including Midas, Tire Kingdom and Tuffy. The transaction is expected to close in the coming months.