- Mavis has agreed to purchase Pep Boys for about $700 million in money.
- The acquisition will add almost 800 areas to Mavis’ already large service community.
- The deal provides Mavis a a lot stronger presence within the western U.S. whereas preserving the enduring Pep Boys model alive.
The nation’s largest tire retailer is about to get even greater. Mavis Tire has agreed to accumulate Pep Boys from Icahn Automotive Group in a deal price roughly $700 million in money.
The acquisition provides almost 800 Pep Boys service areas throughout the US and Puerto Rico to the Mavis portfolio. Mixed with manufacturers like Midas, NTB, Tire Kingdom, and a number of other others already underneath its umbrella, Mavis additional solidifies its standing as one of many largest automotive service and tire retailers in North America.
Picture by: Pep Boys
The deal additionally goals to present Mavis a a lot stronger foothold within the western US. Pep Boys has lengthy had a longtime presence out west, the place Mavis has traditionally been much less dominant.
“Pep Boys is likely one of the most well-respected names within the automotive aftermarket, and we stay up for welcoming it into the Mavis household of manufacturers,” notes David Sorbaro, Co-Chief Government Officer of Mavis. “Pep Boys brings a loyal buyer base, deep-rooted market presence throughout america, and a distribution community that may meaningfully improve our provide chain nationwide.”
Icahn Enterprises bought Pep Boys in 2016 for roughly $1 billion after profitable a bidding warfare with Bridgestone. This deal marks a fairly vital low cost. Icahn will reportedly retain sure Pep Boys actual property belongings, together with its AAMCO Transmissions and Precision Tune Auto Care companies.
This is not the one main consolidation taking place within the auto elements and repair trade, both. O’Reilly Automotive lately made a reported $10 billion bid to accumulate Real Elements Firm, the father or mother firm of NAPA Auto Elements. That deal continues to be pending, however the Mavis-Pep Boys acquisition is already a finished deal.
Motor1’s Take: The Pep Boys acquisition is one more within the cap of the rising Mavis Tire empire. As soon as the deal is formally inked, Mavis will be capable of add Pep Boys’ title to its portfolio—like Thanos snapping up the Infinity Stones.
