US tire retailer Mavis to acquire Pep Boys for $700m

White Plains, New York – US tire and automotive service retailer Mavis Tire Express Services has agreed to acquire automotive service chain Pep Boys from Icahn Enterprises in a cash deal worth around $700 million (€614 million).

Under the definitive agreement, announced 21 July, Mavis will acquire the Pep Boys retail business, while Icahn Enterprises will retain the real estate previously transferred from Pep Boys, as well as the ‘AAMCO transmissions and precision tune auto care’ businesses.

Pep Boys operates nearly 800 locations across the US and Puerto Rico, offering tire fitting, vehicle repairs, oil changes and maintenance services.

The acquisition significantly strengthens Mavis' presence in the western US, where Pep Boys has an established retail footprint, while expanding its position in existing markets.

"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," said David Sorbaro, co-chief executive officer of Mavis.

According to Sorbaro, 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."

"Together, we will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers," he added.

The transaction is expected to close in the coming months, subject to customary closing conditions.