Mavis Tire Express Services Corp. will buy Pep Boys from Icahn Enterprises for about $700 million in cash, adding nearly 800 service locations and lifting its network to more than 4,400 centers across the U.S. and Canada.
The deal gives Mavis a larger western U.S. footprint and brings in a brand with more than 100 years of history in tires, repairs, oil changes, and maintenance. Mavis said Pep Boys’ distribution network will strengthen its supply chain nationwide.
Icahn Enterprises will keep the real estate previously transferred from Pep Boys, along with the AAMCO Transmissions and Precision Tune Auto Care businesses.
Pep Boys was acquired by Icahn Enterprises in 2016. After the transaction closes, Mavis will absorb a business that has been operating from nearly 800 locations nationwide and add it to a company already among the largest independent tire and service providers in North America.
The companies said the transaction is expected to close in the coming months. As a result of these announcements, the company's shares have moved 1.26% on the market, and are now trading at a price of $7.635. Check out the company's full 8-K submission here.
