Pep Boys to be acquired for $700 million in cash
The Pep Boys-Manny, Moe & Jack Holding Corp. is being acquired by the largest tire dealership in the U.S.
Mavis Tire Express Services Corp. has entered into an agreement to acquire the automotive services company from Carl Icahn’s Icahn Enterprises for approximately $700 million in cash. Icahn Enterprises, which bought Pep Boys in 2016, will retain the owned real estate previously transferred to it from Pep Boys, as well as the AAMCO Transmissions and Precision Tune Auto Care businesses.
Pep Boys operates nearly 800 locations across the U.S. and Puerto Rico. The acquisition expands Mavis’s presence in new and existing markets, particularly across the Western United States, where Pep Boys has a significant retail footprint. It grows Mavis’s network to more than 4,400 auto service center locations across the United States and Canada.
“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, CEO 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.”
Based in White Plains, N.Y., Mavis is owned by BayPine LP, Consumer Partners. The company owns and operates more than 3,600 owned and franchised retail locations across the U.S. and Canada, with banners that include Mavis Discount Tire, Mavis Tires & Brakes, Midas, Express Oil Change & Tire Engineers, Brakes Plus, Tire Kingdom, NTB (National Tire & Battery), Town Fair Tire and Tuffy.
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“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,” said David Sorbaro, co-CEO of Mavis. “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 deal is expected to close in the coming months, subject to satisfaction or waiver of customary closing conditions.
Advisors
Covington & Burling LLP and Bullard Law Group, PLLC are serving as legal counsel, Jefferies is serving as exclusive financial advisor, and C Street Advisory Group is serving as strategic communications advisor to Mavis. Brown Rudnick LLP is serving as legal counsel to IEP.
