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Mavis Agrees to Buy Pep Boys From Icahn for $700 Million

The sale gives Mavis a large national footprint and stronger distribution capacity that could accelerate consolidation in the parts and service market.

Overview

  • A transaction announced Tuesday shows Mavis Tire Express Services will pay $700 million in cash to acquire Pep Boys from Icahn Enterprises.
  • Under the deal Icahn Enterprises will keep substantial Pep Boys real estate and retain the AAMCO Transmissions and Precision Tune Auto Care businesses.
  • Mavis says the purchase will lift its network to more than 4,400 service centers across the U.S. and Canada and strengthen its supply chain and presence in western U.S. markets.
  • Icahn bought Pep Boys in 2016 for about $1 billion and has since seen mixed results in its auto holdings, reporting a $459 million net loss in Q1 2026 that included $20 million in automotive losses.
  • The sale follows other large deals and bids in the sector, such as a reported O’Reilly offer for NAPA, and could prompt further consolidation, changes to local service footprints and shifts in supplier distribution.