White Plains, N.Y. and Sunny Isles Beach, Fla. — Mavis Tire Express Services Corp. and Icahn Enterprises LP have entered into a definitive agreement under which a subsidiary of Mavis will acquire Pep Boys from Icahn Automotive Group LLC for approximately $700 million in cash.
IEP will retain the owned real estate previously transferred to IEP from Pep Boys, as well as the AAMCO Transmissions and Precision Tune Auto Care businesses.
Formally named The Pep Boys-Manny, Moe & Jack Holding Corp., Pep Boys is an automotive service company offering tires, repairs, oil changes and maintenance services from nearly 800 retail locations nationwide. Navy veterans Emanuel “Manny” Rosenfeld, Maurice “Moe” Strauss and Graham “Jack” Jackson founded the company in 1921.
According to Mavis, the acquisition expands its presence in new and existing markets, particularly across the Western United States where Pep Boys maintains a significant retail footprint. The deal grows Mavis’ network to more than 4,400 service center locations across the United States and Canada.
“Pep Boys brings a loyal customer base, deep-rooted market presence across the United States and a distribution network that will meaningfully enhance our supply chain nationwide,” says David Sorbaro, co-CEO of Mavis.
“As part of the Mavis family, Pep Boys will have the scale, footprint and operational and technological strength to continue building on its legacy as it enters a new chapter of growth,” says Joe Auriemma, CEO of Pep Boys.
The transaction is expected to close in the coming months, subject to satisfaction or waiver of customary closing conditions.
White Plains-based Mavis is one of North America’s largest independent tire and vehicle service providers with a footprint of more than 3,600 owned and franchised retail locations across the United States and Canada. Mavis owns and operates a portfolio of auto service center brands, including Mavis Discount Tire, Mavis Tire & Brakes, Midas, Express Oil Change & Tire Engineers, Brakes Plus, Tire Kingdom, NTB, Town Fair Tire and Tuffy.
Sunny Isles Beach-based IEP, a master limited partnership, is a diversified holding company engaged in seven primary business segments: investment, energy, automotive, food packaging, real estate, home fashion and pharma. IEP acquired Pep Boys in 2016. The company’s stock price opened at $7.75 per share Wednesday, July 22, down from $9.31 per share one year ago.
— Kristin Harlow