Mavis has finalized plans to purchase Pep Boys for roughly 700 million dollars in cash.
Nearly 800 sites will join the existing extensive service network operated by Mavis.
The transaction boosts Mavis presence significantly in western regions while preserving the Pep Boys brand identity.

The leading tire retailer in the country is set to expand further. Mavis Tire reached an agreement to acquire Pep Boys from Icahn Automotive Group through a cash transaction valued at approximately 700 million dollars.

This move incorporates close to 800 Pep Boys service centers located across the United States and Puerto Rico into the Mavis collection. When combined with existing brands such as Midas, NTB, and Tire Kingdom already managed under the same umbrella, the company reinforces its role among the top automotive service and tire providers in North America.

The arrangement is intended to establish a firmer base for Mavis in the western United States. Pep Boys has maintained a solid footprint in that area, where Mavis has traditionally held less strength.

"Pep Boys stands as one of the most respected names in the automotive aftermarket, and we anticipate integrating it into the Mavis family of brands," states David Sorbaro, Co-Chief Executive Officer of Mavis. "Pep Boys contributes a dedicated customer following, established market reach throughout the country, and a distribution system that will substantially improve our national supply chain operations."

Icahn Enterprises acquired Pep Boys during 2016 for about one billion dollars following a competitive bidding process against Bridgestone. The current sale reflects a notable reduction in value. Icahn is expected to keep select Pep Boys property holdings in addition to its AAMCO Transmissions and Precision Tune Auto Care operations.

Consolidation continues across the auto parts and service sector. O'Reilly Automotive submitted a bid reported at 10 billion dollars to purchase Genuine Parts Company, which owns NAPA Auto Parts. While that proposal remains under review, the Mavis and Pep Boys agreement has reached completion.

Motor1 Analysis: The Pep Boys purchase represents one more step in the expansion of the Mavis Tire network. Upon finalization, Mavis gains the ability to incorporate the Pep Boys name alongside its other holdings.

Source: Mavis Tire