The nation's largest tire retailer is about to get even bigger. Mavis Tire has agreed to acquire Pep Boys from Icahn Automotive Group in a deal worth approximately $700 million in cash.
The acquisition adds nearly 800 Pep Boys service locations across the US and Puerto Rico to the Mavis portfolio. Combined with brands like Midas, NTB, Tire Kingdom, and several others already under its umbrella, Mavis further solidifies its status as one of the largest automotive service and tire retailers in North America.
The deal also aims to give Mavis a much stronger foothold in the western US. Pep Boys has long had an established presence out west, where Mavis has historically been less dominant.
"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," notes David Sorbaro, Co-Chief Executive Officer of Mavis. "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."
Icahn Enterprises purchased Pep Boys in 2016 for roughly $1 billion after winning a bidding war with Bridgestone. This deal marks a pretty significant discount. Icahn will reportedly retain certain Pep Boys real estate assets, along with its AAMCO Transmissions and Precision Tune Auto Care businesses.
This isn't the only major consolidation happening in the auto parts and service industry, either. O'Reilly Automotive recently made a reported $10 billion bid to acquire Genuine Parts Company, the parent company of NAPA Auto Parts. That deal is still pending, but the Mavis-Pep Boys acquisition is already a done deal.
Motor1’s Take: The Pep Boys acquisition is yet another in the cap of the growing Mavis Tire empire. Once the deal is officially inked, Mavis will be able to add Pep Boys' name to its portfolio—like Thanos snapping up the Infinity Stones.
