Mavis Tire to acquire iconic auto-service chain – Business News
Icahn Enterprises on Tuesday introduced that the company reached a deal to sell Pep Boys to Mavis, one of the biggest unbiased tire and repair suppliers within the nation, in a $700 million deal.
Pep Boys has practically 800 places across the nation and presents auto companies together with tires, repairs, oil adjustments and upkeep.
The deal will increase Mavis’ presence in new and present markets, notably within the western US, the place Pep Boys has a vital presence, and can increase Mavis’ community to over 4,400 service facilities across the US and Canada.
“Today’s announcement marks a significant milestone as Mavis continues to execute its growth strategy. 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,” stated Mavis co-CEO David Sorbaro.
Pep Boys has practically 800 places across the nation. Getty Images
Sorbaro added that the deal “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.”
Pep Boys CEO Joe Auriemma stated that, “For more than 100 years, Pep Boys has earned the trust of drivers across the country by delivering quality service with honesty and care,” including that Mavis shares these values and its community will give Pep Boys the “scale, footprint, and operational and technological strength to continue building on its legacy as it enters a new chapter of growth.”
Pep Boys presents auto companies together with tires, repairs, oil adjustments and upkeep. Bloomberg by way of Getty Images
Mavis is one of the biggest unbiased tire and repair suppliers within the nation, Mahmoud Suhail – stock.adobe.com
Carl Icahn, chairman of Icahn Enterprises, welcomed the deal and stated that they “believe that the combined businesses will benefit greatly from the inevitable economies of scale and from the great experience of the Mavis team in the industry.”
Under the deal, Icahn Enterprises will retain the real estate it obtained from Pep Boys, in addition to the AAMCO Transmissions and Precision Tune Auto Care companies.
Carl Icahn, Icahn Enterprises Chairman, during his keynote on the sixth annual CNBC Institutional Investor Delivering Alpha Conference on Sept. 13, 2016. NBCU Photo Bank/NBCUniversal by way of Getty Images
Pep Boys was acquired by Icahn Enterprises in 2016, taking the auto service chain personal in an all-cash $1 billion deal after it had been publicly traded.
Mavis operates different auto service manufacturers together with Midas, Tire Kingdom and Tuffy.
The transaction is anticipated to close within the coming months.
Reuters contributed to this report.
