Full Breakdown
Mavis Tire Express Services to Acquire Pep Boys in $700 Million Deal
7/21/2026, 9:26:23 PM
Core Event
Mavis Tire Express Services Corp., the United States’ largest independent tire dealership, has signed a definitive agreement to purchase Pep Boys – Manny, Moe & Jack from Icahn Enterprises. The transaction is valued at approximately $700 million in cash, subject to customary adjustments, and is slated to close in the coming months pending standard closing conditions.
Background & Context
Pep Boys, founded in Philadelphia in 1921 by Navy veterans Manny Rosenfeld, Moe Strauss and Jack Jackson, operates nearly 800 automotive service locations across the United States and Puerto Rico. Icahn Enterprises acquired the chain in 2016 for $1.3 billion after a contested takeover that outbid Bridgestone. Since then, the holding company has faced pressure over leverage and a challenging operating environment for brick-and-mortar auto-service retailers, prompting a broader portfolio rationalisation.
Mavis, headquartered in White Plains, New York, has pursued aggressive growth through acquisitions. It previously bought 1,200 Midas locations and 595 National Tire & Battery/Tire Kingdom stores from TBC Corp., expanding its footprint from roughly 40 locations in 2010 to more than 3,600 sites under multiple brands, including Midas, Express Oil Change & Tire Engineers, and Tire Kingdom.
Data & Statistics
- Pep Boys footprint: ~800 locations (U.S. and Puerto Rico) serving millions of individual and commercial customers.
- Mavis footprint (pre-deal): >3,600 locations across a portfolio of automotive service brands.
- Combined network post-deal: >4,400 owned and franchised service-center locations in the United States and Canada.
- Purchase price: Approximately $700 million in cash, representing roughly half the $1.3 billion Icahn paid in 2016, according to the Eastern Herald.
Official Statements & Responses
- David Sorbaro, Co-CEO of Mavis Tire Express Services: “Today’s announcement marks a significant milestone as Mavis continues to execute its growth strategy.”
- Stephen Sorbaro, Co-CEO of Mavis: “Together, we will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers and create meaningful opportunities for employees.”
Legal and financial advisers include Jefferies (exclusive financial adviser to Mavis), Covington & Burling and Bullard Law Group (legal counsel to Mavis), C Street Advisory Group (strategic communications), and Brown Rudnick (legal counsel to Icahn Enterprises).
Why It Matters
The acquisition creates one of the nation’s largest independent auto-service networks, positioning Mavis to leverage economies of scale in purchasing, distribution, and technology. Industry analysts note that consolidation is a primary response to structural pressures: rising labor costs, e-commerce competition in parts retail, and uncertainty about demand for combustion-engine services as electric-vehicle adoption expands. By adding Pep Boys’ inventory-management infrastructure and established brand equity, Mavis aims to strengthen its national supply chain and broaden its customer base beyond its traditionally service-oriented model.
What's Next
The deal remains subject to customary closing conditions and regulatory approvals. Mavis has not disclosed specific integration plans, leaving open whether Pep Boys will retain its brand identity, be rebranded under the Mavis banner, or operate as a dual-brand platform. The completion of the transaction in the coming months will signal the next phase of consolidation in the independent automotive aftermarket.
