Icahn Enterprises on Tuesday announced that the company reached a deal to sell Pep Boys to Mavis, one of the largest independent tire and service providers in the country, in a $700 million deal.
Pep Boys has nearly 800 locations around the country and offers auto services including tires, repairs, oil changes and maintenance.
The deal will expand Mavis' presence in new and existing markets, particularly in the western U.S. where Pep Boys has a significant presence, and will increase Mavis's network to over 4,400 service centers around the U.S. and Canada.
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Pep Boys is being acquired by Mavis in a $700 million deal with Icahn Enterprises. (Joe Raedle/Getty Images)
"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," said Mavis co-CEO David Sorbaro.
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."
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Icahn Enterprises chairman Carl Icahn touted the deal in a statement. (Adam Jeffery/CNBC/NBCU Photo Bank/NBCUniversal via Getty Images)
Pep Boys CEO Joe Auriemma said 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," adding that Mavis shares those values and its network 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."
Carl Icahn, chairman of Icahn Enterprises, welcomed the deal and said 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."
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The deal would expand Mavis' footprint in the Western U.S. (Fox News)
Under the deal, Icahn Enterprises will retain the real estate it obtained from Pep Boys, as well as the AAMCO Transmissions and Precision Tune Auto Care businesses.
Pep Boys was acquired by Icahn Enterprises in 2016, taking the auto service chain private in an all-cash $1 billion deal after it had been publicly traded.
Mavis operates other auto service brands including Midas, Tire Kingdom and Tuffy.
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The transaction is expected to close in the coming months.
Reuters contributed to this report.
