- Pep Boys is being sold to Mavis Tire for $700 million in cash.
- The company has around 800 locations in the United States.
- Comes after O’Reilly made a reported offer for NAPA Auto Parts.
The automotive parts and service industry is huge and there’s been some big developments in the past month. The latest is that Pep Boys has a new owner.
Mavis Tire is purchasing the chain from Icahn Enterprises for approximately $700 million in cash. Under the terms of the deal, Icahn will retain real estate they previously transferred to Pep Boys as well as the AAMCO Transmissions and Precision Tune Auto Care businesses.
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Pep Boys has nearly 800 locations in the United States and they perform everything from oil changes to repairs. The company also sells tires and batteries.
The acquisition will expand Mavis’ footprint to more than 4,400 service centers across Canada and the United States. The company seems to have wanted Pep Boys to grow in western states, but they noted the deal involves a mix of new and existing markets.
Icahn bought Pep Boys in 2016 for a reported $1 billion, so its sounds like Mavis is getting a deal. Their co-CEO, David Sorbaro, said “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.” He added the firm has a “loyal customer base, deep-rooted market presence across the United States, and a distribution network that will meaningfully enhance our supply chain nationwide.”
O’Reilly Wants NAPA Auto Parts
The Pep Boys sale isn’t the only interesting development as Bloomberg reported earlier this month that O’Reilly Auto Parts offered $10 billion to buy the auto parts unit of the Genuine Parts Company. This would give them ownership of rival NAPA Auto Parts.
Genuine Parts didn’t mention anything about the reported bid in their second quarter earnings release today, but CEO Will Stengel said “Our teams performed well despite a dynamic global environment, and we remain on track to complete our planned separation in the first quarter of 2027.”
Besides confirming a breakup is expected soon, GPC reported sales were up 6% to $6.5 billion. However, net income fell from $255 million to $228 million.
