Mavis to Acquire Pep Boys in $700 Million Deal, Expanding North American Automotive Service Network
Mavis Tire Express Services Corp., one of North America’s largest independent tire and automotive service providers, has announced plans to acquire The Pep Boys-Manny, Moe & Jack Holding Corp. from Icahn Automotive Group LLC, a subsidiary of Icahn Enterprises L.P. The all-cash transaction is valued at approximately $700 million, subject to customary purchase price adjustments and other closing conditions.
The agreement represents a major development in the North American automotive aftermarket and is expected to significantly expand Mavis’s geographic reach, customer base and service-center network. Once completed, the acquisition will bring nearly 800 Pep Boys locations into Mavis’s broader operations and increase the combined company’s footprint to more than 4,400 service centers across the United States and Canada.
The transaction is designed to strengthen Mavis’s position as a major independent provider of tires, vehicle maintenance and automotive repair services. It will also give the company a significantly larger presence in markets where it currently has limited operations, particularly across the Western United States.
Pep Boys has built one of the most recognizable names in the American automotive aftermarket. With a history spanning more than a century, the company provides a broad range of services, including tire sales and installation, oil changes, preventive maintenance, mechanical repairs and other automotive services. Its extensive retail network and long-standing customer relationships have made it a familiar brand for vehicle owners across the country.
Under the terms of the agreement, a subsidiary of Mavis will acquire Pep Boys from Icahn Automotive Group. Icahn Enterprises will retain ownership of the real estate that was previously transferred from Pep Boys to IEP. The transaction also does not include the AAMCO Transmissions or Precision Tune Auto Care businesses, which will remain with Icahn Enterprises.
For Mavis, the acquisition represents a significant step in its long-term growth strategy. The company has expanded substantially in recent years by building a broad network of automotive service locations and strengthening its presence across multiple regions. The addition of Pep Boys will allow Mavis to enter new markets while also increasing its density in areas where both companies already operate.
“Today’s announcement marks a significant milestone as Mavis continues to execute its growth strategy,” said David Sorbaro, Co-Chief Executive Officer of Mavis. “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.”
Sorbaro said the acquisition will bring together two companies with complementary strengths. Pep Boys contributes a loyal customer base, a recognized national brand and a broad retail presence, while Mavis brings scale, industry experience and a growing network of service centers.
According to Mavis, Pep Boys’ distribution network will also play an important role in improving the combined company’s supply chain capabilities. A larger network could allow the business to benefit from increased purchasing power, improved logistics and greater operational efficiencies across its service-center network.
“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,” Sorbaro added. “Together, we will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers and create meaningful opportunities for employees.”
The combined organization will serve customers across a broad range of automotive needs. As vehicles become increasingly complex and consumers continue to depend on professional maintenance providers, the scale of the combined business could provide Mavis with greater opportunities to invest in technology, training, inventory and customer service.
The acquisition also comes at a time when the automotive aftermarket continues to experience structural growth. The average age of vehicles on North American roads has increased over time, creating sustained demand for repairs, replacement tires and preventive maintenance. At the same time, modern vehicles are becoming more technologically advanced, requiring specialized equipment and trained technicians.
These trends have increased the importance of scale in the automotive service industry. Larger operators can potentially improve purchasing efficiency, expand service capabilities and invest in technology across a wider network. The Mavis-Pep Boys combination is expected to create one of the largest independent automotive service platforms in North America.
For Pep Boys, the transaction will provide access to the resources and operational scale of a larger organization while preserving the brand’s long-standing identity and customer relationships.
“For more than 100 years, Pep Boys has earned the trust of drivers across the country by delivering quality service with honesty and care,” said Joe Auriemma, Chief Executive Officer of Pep Boys. “Mavis shares these values and, as part of the Mavis family, Pep Boys will have the scale, footprint, and operational and technological strength to continue building on its legacy as it enters a new chapter of growth.”
Pep Boys has operated through significant changes in the automotive industry over the course of its history. From its origins as a tire and automotive service business, the company has evolved alongside changes in vehicle technology, consumer behavior and the broader aftermarket sector.
The company’s nearly 800 locations provide Mavis with an established retail and service infrastructure in numerous markets. The Western United States is expected to be particularly important to the acquisition because Pep Boys has a substantial presence in the region. The transaction will therefore help Mavis achieve a more geographically balanced footprint across the country.
Icahn Enterprises said the transaction reflects its confidence in the long-term prospects of the combined business.
“We believe that the combined businesses will benefit greatly from the inevitable economies of scale and from the great experience of the Mavis team in this industry,” said Carl C. Icahn, Chairman of IEP. “We welcome the Mavis acquisition and are thankful to all of the employees of Pep Boys who made this transaction possible.”
Icahn Enterprises acquired Pep Boys in 2016, citing the company’s strong brand, loyal customer base and significant potential for growth. Over the following decade, IEP worked with the Pep Boys team to develop the company and strengthen its competitive position in the automotive aftermarket.
“Icahn Enterprises acquired Pep Boys in 2016 because of its exceptional fundamentals – a storied brand, a loyal customer base, and a footprint that needed the right stewardship to realize its full potential,” said Ted Papapostolou, Chief Executive Officer of IEP.
“Over the past decade, we have worked closely with the Pep Boys team to grow the company and strengthen its competitive position while maintaining best-in-class customer service. I look forward to watching Pep Boys continue to grow and succeed as part of Mavis,” Papapostolou added.
The transaction is also expected to create potential opportunities for employees. With a larger combined organization, workers may benefit from expanded operational resources, broader career opportunities and increased investment in the company’s service network.
For customers, the acquisition could eventually result in a broader range of service capabilities and greater access to automotive maintenance locations. However, specific details regarding the future operation of Pep Boys locations, brand integration and other operational changes have not yet been announced.
The companies said the transaction is expected to close in the coming months. Completion remains subject to customary closing conditions, including the satisfaction or waiver of applicable requirements.
Following the completion of the deal, Mavis will have a significantly larger presence in the North American automotive aftermarket. The company’s expanded network of more than 4,400 service centers across the United States and Canada will position it as one of the largest independent operators in the sector.
The acquisition highlights the continuing consolidation of the automotive service industry, where companies are seeking greater scale to compete in an increasingly complex market. As consumers keep older vehicles on the road for longer periods and demand for professional automotive services continues to grow, companies with extensive geographic coverage and strong operational capabilities are positioned to compete for a larger share of the aftermarket.
By combining Mavis’s existing network with Pep Boys’ established brand, customer base and national footprint, the transaction is expected to create a more geographically diverse automotive service platform. The companies believe the combination will support future growth while allowing Pep Boys to continue building on its long-standing reputation.
The $700 million acquisition marks a significant new chapter for both companies. For Mavis, it represents an opportunity to accelerate expansion and strengthen its position as a leading independent tire and automotive service provider. For Pep Boys, the deal offers a path to continued growth under new ownership while maintaining the foundation of a brand that has served American drivers for more than 100 years.
As the transaction moves toward completion, the automotive aftermarket will be watching closely to see how the combined company integrates its operations, brands, service centers and supply-chain capabilities. If successfully executed, the acquisition could reshape the competitive landscape of the North American automotive service industry and create a powerful platform for continued expansion.
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