Mavis to Acquire Pep Boys in $700 Million Deal with Icahn Enterprises

Mavis, a leading provider of automotive services and tires, has reached a definitive agreement to acquire Pep Boys from Icahn Enterprises for $700 million. The acquisition represents a major consolidation in the North American automotive aftermarket, significantly expanding Mavis’s reach into the Western United States.

Under the terms of the deal, Mavis will absorb nearly 800 Pep Boys locations into its existing portfolio. This move will increase the company’s total footprint to more than 4,400 service centers across the United States and Canada. Mavis already operates several well-known brands in the sector, including Midas, Tire Kingdom, and Tuffy, positioning itself as a dominant competitor against other national chains.

The transaction marks a strategic shift for billionaire investor Carl Icahn, whose firm acquired Pep Boys in 2016 for approximately $1 billion following a competitive bidding war. While Icahn Enterprises is divesting the service business, it will retain ownership of the underlying real estate associated with the Pep Boys locations. Furthermore, Icahn will maintain its interests in AAMCO Transmissions and Precision Tune Auto Care, focusing on specialized repair niches.

The automotive service industry is currently navigating a period of heightened demand as vehicle owners face rising costs for new and used cars. According to data from the U.S. Bureau of Labor Statistics, the cost of motor vehicle maintenance and repair has consistently trended upward, driven by inflation and the increasing complexity of modern vehicle technology. This economic environment has encouraged many consumers to invest in the longevity of their current vehicles rather than purchasing new ones.

David Sorbaro, co-CEO of Mavis, described the acquisition as a milestone in the company’s growth strategy. He noted that the integration of Pep Boys would create a more geographically diverse platform, providing the scale necessary to offer dependable service to a broader customer base while creating new professional opportunities for employees.

For Pep Boys, which has operated for over a century, the deal marks the beginning of a new chapter. CEO Joe Auriemma stated that the partnership with Mavis would provide the technological and operational strength required to build on the brand’s legacy. The shift toward larger, consolidated networks is a growing trend in the industry, as independent shops seek the “economies of scale” mentioned by Carl Icahn to manage the high costs of specialized diagnostic equipment and technician training.

The deal is expected to close in the coming months, subject to standard regulatory approvals and closing conditions. Once finalized, the combined entity will be one of the largest independent tire and service providers in North America, capitalizing on a market where professional maintenance is increasingly viewed as a necessity rather than a luxury.