A Pep Boys sign is seen on the outside of the auto service and tire store in Miami on July 21, 2026. Joe Raedle/Getty Images
Icahn Enterprises, the publicly traded holding company controlled by activist investor Carl Icahn, announced on July 21 that it had reached an agreement with Mavis Tire Express Services Corp. to divest its Pep Boys business for $700 million.
Pep Boys—an automotive service and tire installation company that became a household brand through its namesake founders, Manny, Moe, and Jack (Emanuel “Manny” Rosenfeld, Maurice “Moe” Strauss, and W. Graham “Jack” Johnson)—operates nearly 800 locations in the United States and Puerto Rico. Pep Boys was founded in 1921 in West Philadelphia.
Icahn Enterprises will retain some of the real estate that had previously been transferred to it when it acquired Pep Boys-Manny, Moe & Jack Holding Corp. in 2016 for approximately $1.03 billion in an all-cash transaction.
The deal brings White Plains, New York-based Mavis’s network of service centers to more than 4,400 in the United States and Canada and dovetails with the company’s growth strategy, Mavis co-CEO David Sorbaro said.
“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 in a press release.
“Together, we will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers.”
Icahn, who took Pep Boys private following its acquisition, said in a statement that divesting the brand allows Mavis to capitalize on its experience and the synergies of owning the combined businesses.
Icahn Enterprises acquired Pep Boys in 2016 following a heated weeks-long
war with Japanese tire manufacturer Bridgestone. Icahn’s buyout offer was $18.50 per share, higher than the $17 per share Bridgestone had agreed to pay for Pep Boys. Icahn also paid Bridgestone a $39.5 million termination fee, as Pep Boys had already agreed to a deal with Bridgestone.
“Icahn Enterprises acquired Pep Boys in 2016 because of its exceptional fundamentals—a storied brand, a loyal customer base, and a footprint that needed the right stewardship to realize its full potential,” Ted Papapostolou, CEO of Icahn Enterprises, said in a July 21 press release.
“Over the past decade, we have worked closely with the Pep Boys team to grow the company and strengthen its competitive position while maintaining best-in-class customer service.”
Icahn said in 2016 that the acquisition of Pep Boys offered strong growth potential when paired with Auto Plus, an auto parts supplier in Icahn Enterprises’ portfolio. However, Auto Plus filed for Chapter 11 bankruptcy in 2023.
The deal for Pep Boys is expected to close in the coming months, the companies said. The law firms Covington & Burling and Bullard Law Group served as legal advisers to Mavis, while Jefferies is its financial adviser and C Street Advisory Group is providing strategic communications. Brown Rudnick advised Icahn Enterprises in the transaction.
Reuters contributed to this report.
