Mavis Tire Express Services is acquiring Pep Boys from Carl Icahn's Icahn Enterprises for $700M in cash, the buyer announced Tuesday. The transaction includes the 800-location auto service chain but excludes certain real estate assets that Icahn Enterprises will retain. The deal expands Mavis's geographic reach across North America, particularly in the western United States where Pep Boys maintains a strong presence.
Icahn Enterprises acquired Pep Boys in 2016 for $1B following a bidding war with Japanese tire manufacturer Bridgestone. Most of the real estate associated with Icahn's automotive businesses was transferred to a separate division last year, according to The Wall Street Journal. The conglomerate is also retaining its Aamco Transmissions and Precision Tune Auto Care businesses.
The sale comes as Icahn Enterprises reported a net loss of $459M in the first quarter, including $20M in losses from its automotive segment. As of March 31, the conglomerate held a net asset value of $3.4B with holdings spanning energy, automotive, food packaging, real estate, home fashion and pharmacy industries.
David Sorbaro, co-CEO of New York-based Mavis, said in a statement that the acquisition provides strategic value beyond geographic expansion. "Pep Boys brings a loyal customer base, deep-rooted market presence across the United States, and a distribution network that will meaningfully enhance our supply chain nationwide," Sorbaro said. "Together, we will create a stronger, more geographically diverse platform."
Icahn's automotive portfolio has faced challenges in recent years. The conglomerate sold parts manufacturer Federal-Mogul in 2018 after holding it for approximately a decade. Auto Plus, another Icahn subsidiary, filed for bankruptcy in 2023. The Pep Boys divestiture represents the latest reshaping of the automotive segment within Icahn's broader holdings.
The transaction follows other recent real estate moves by Icahn entities. In September, an Icahn subsidiary listed the former Trump Plaza Hotel and Casino in Atlantic City for sale. The 10.7-acre parcel at 2201 Boardwalk was listed without a disclosed asking price. The Trump-branded property shuttered in 2014.
The retention of select Pep Boys real estate aligns with Icahn Enterprises' broader strategy of separating operating businesses from underlying property assets. By holding the real estate separately, the conglomerate maintains optionality for future monetization while transferring operational responsibilities and liabilities to Mavis. The structure also allows Icahn to potentially negotiate lease arrangements with the new operator.
Mavis gains immediate scale through the deal, absorbing a national brand with decades of market recognition in the automotive service sector. The combination positions the acquirer to compete more effectively against national chains while leveraging Pep Boys' established distribution infrastructure. The western U.S. presence fills geographic gaps in Mavis's existing footprint and provides entry into markets where the company previously lacked density.