Key facts
- Mavis Tire Express Services is acquiring Pep Boys from Icahn Enterprises for $700 million in cash.
- Pep Boys operates 800 locations across the United States.
- Icahn Enterprises will retain ownership of some of the real estate associated with the sale.
- Icahn Enterprises will also keep its Aamco Transmissions and Precision Tune Auto Care businesses.
Icahn Enterprises has agreed to sell the auto service chain Pep Boys to Mavis Tire Express Services for $700 million in cash. The deal allows Mavis, which is based in New York, to expand its presence across North America, particularly in the western U.S. where Pep Boys has a strong footprint.
Mavis co-CEO David Sorbaro stated that Pep Boys' loyal customer base, market presence, and distribution network will enhance their nationwide supply chain, creating a stronger and more geographically diverse platform. Icahn Enterprises, which acquired Pep Boys in 2016 for $1 billion, will retain some of the associated real estate. The conglomerate is also holding onto its Aamco Transmissions and Precision Tune Auto Care businesses.
Icahn Enterprises reported a net loss of $459 million in the first quarter, with its automotive segment contributing $20 million in losses. Some of Icahn's auto-centric businesses have faced challenges, including the sale of parts manufacturer Federal-Mogul in 2018 and the bankruptcy filing of subsidiary Auto Plus in 2023.