Mavis Tire Snaps Up Pep Boys in $700 Million Deal, Reshaping Auto Service Industry

The automotive repair and parts world just got a lot more interesting. Mavis Tire has agreed to buy Pep Boys from Icahn Enterprises for $700 million in cash, snatching up a chain with nearly 800 locations across the United States. The deal, announced this week, marks the latest shakeup in a sector that’s seen a flurry of activity lately.

Under the terms, Icahn will hold onto the real estate tied to Pep Boys, as well as its AAMCO Transmissions and Precision Tune Auto Care brands.

For Mavis, the acquisition is a major expansion play. S. and Canada. Mavis co-CEO David Sorbaro called Pep Boys “one of the most well-respected names in the automotive aftermarket,” noting the deal brings a loyal customer base, a strong market presence, and a distribution network that will strengthen Mavis’ supply chain nationwide.

Icahn originally bought Pep Boys in 2016 for roughly $1 billion, so the sale price suggests Mavis is getting a bargain.

The Pep Boys news comes on the heels of another potential bombshell: Bloomberg reported earlier this month that O’Reilly Auto Parts offered $10 billion to buy the auto parts unit of Genuine Parts Company, which owns rival chain NAPA Auto Parts. While Genuine Parts didn’t address the bid directly in its second-quarter earnings report, CEO Will Stengel said the company remains on track to complete a planned separation by early 2027.

5 billion, though net income slipped from $255 million to $228 million. Between the Mavis-Pep Boys deal and the possible O’Reilly-NAPA merger, the industry is clearly in a period of rapid consolidation.