en.Wedoany.com Reported - U.S. tire service company Mavis Tire will acquire auto service chain brand Pep Boys from Icahn Enterprises for approximately $700 million in cash. This transaction has become one of the most notable developments in the auto parts and service market recently.

Under the terms of the deal, Icahn Enterprises will retain the real estate previously transferred to Pep Boys, as well as the AAMCO Transmissions and Precision Tune Auto Care businesses. Pep Boys operates nearly 800 stores across the United States, offering a full range of services from oil changes to repairs, while also selling tires and batteries.

This acquisition will expand Mavis's service network to over 4,400 service centers across Canada and the United States. Mavis stated that the deal involves a mix of new and existing markets, and the company appears to want Pep Boys to grow in western states. According to reports, Icahn acquired Pep Boys for $1 billion in 2016, making Mavis's purchase price relatively lower. Mavis Co-CEO David Sorbaro said: "Pep Boys is one of the most respected brands in the automotive aftermarket, and we look forward to bringing it into the Mavis brand family." He added that the company has "a loyal customer base, deep-rooted U.S. market coverage, and a distribution network that will significantly enhance our national supply chain."

In addition to the Pep Boys deal, O'Reilly Auto Parts, as reported by Bloomberg earlier this month, made a $10 billion offer to acquire the automotive parts division of Genuine Parts Company. This transaction would give O'Reilly ownership of competitor NAPA Auto Parts. Genuine Parts did not mention the offer in its second-quarter earnings report, but CEO Will Stengel said that despite a volatile global environment, the team performed well and remains on track to complete the planned spin-off by the first quarter of 2027. The company reported a 6% increase in sales to $6.5 billion, but net profit fell from $255 million to $228 million.