Mavis to Acquire Pep Boys for $700 Million in Cash

Mavis Tire Express Services Corp. has entered into a definitive agreement to acquire Pep Boys from Icahn Enterprises L.P. (IEP) for approximately $700 million in cash. The acquisition will add about 800 Pep Boys retail locations to Mavis’ portfolio to bring its total footprint to over 4,400 service centers across North America. 

As part of the agreement, IEP will retain ownership of underlying real estate transferred from Pep Boys. The AAMCO Transmissions and Precision Tune Auto Care franchises, also owned by IEP, are not part of the deal.

While Pep Boys is a legendary name in the auto care space, it operates on an entirely corporate model. Still, Mavis, which does run a franchise model, added it to the ecosystem. Owning and franchising major brands like Midas and Tuffy, Mavis is a key player driving automotive consolidation as it builds a hybrid footprint of both franchised and corporate-owned locations.

Acquiring large, corporate-owned networks like Pep Boys increases unit density and customer volume for Mavis. The acquisition could also give Mavis opportunities to optimize its corporate footprint, potentially by refranchising underperforming or strategically positioned units.

Read the full release here.

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