Icahn Enterprises (IEP) has reached an agreement to divest its automotive service chain, Pep Boys, to Mavis Tire Express Services. The transaction is valued at approximately $700 million in cash, as reported by The Wall Street Journal, citing individuals familiar with the matter.
This sale marks a significant move for Carl Icahn’s investment firm, which acquired Pep Boys in 2016. The deal is expected to be finalized soon, pending customary closing conditions.
Pep Boys operates a network of automotive repair and maintenance facilities across the United States. Mavis Tire Express Services, a privately held company, is a major player in the tire and automotive service industry, with a substantial footprint on the East Coast.
The strategic rationale behind the sale and the potential impact on the automotive service market are points of interest for industry observers. Further details regarding the integration and future plans for Pep Boys under Mavis ownership are anticipated following the completion of the deal.
