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Mavis buys Pep Boys for $700M, Icahn keeps related real estate

The deal is all-cash and comes as Icahn retains real estate tied to its auto businesses after restructuring the assets into a separate division last year.

Reported · Written up by our desk · Industry

Mavis Tire Express Services is purchasing Pep Boys from Icahn Enterprises for $700 million in cash, according to Bisnow. The acquisition gives Mavis the Pep Boys brand, which operates about 800 locations.

Bisnow reports that Pep Boys will help Mavis expand its footprint across North America, with an emphasis on the western U.S., where Pep Boys has a strong presence. Mavis co-CEO David Sorbaro said the brand brings a loyal customer base, market presence, and a distribution network that will enhance Mavis supply chain nationwide.

Icahn will retain some of the real estate associated with Pep Boys, which it acquired as part of a $1 billion Pep Boys purchase in 2016 after a bidding war with Bridgestone. Bisnow also notes that most real estate linked to Icahn’s auto businesses was transferred to a separate division last year.

Bisnow adds that Icahn Enterprises is also holding on to its Aamco Transmissions and Precision Tune Auto Care businesses. The company reported a net asset value of $3.4 billion as of March 31 and a net loss of $459 million in the first quarter, including $20 million in losses from its automotive segment.

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