Mavis Tire Express Services Corp. has agreed to acquire automotive service chain Pep Boys from Icahn Enterprises for approximately $700 million in cash.

Under the definitive agreement announced July 21, a Mavis subsidiary will acquire The Pep Boys-Manny, Moe & Jack Holding Corp. from Icahn Automotive Group LLC. The purchase price is subject to customary adjustments.

Icahn Enterprises will retain real estate that was previously transferred from Pep Boys, along with its AAMCO Transmissions and Precision Tune Auto Care businesses.

Pep Boys provides tire sales, repairs, oil changes and maintenance services through nearly 800 locations across the U.S. and Puerto Rico. The acquisition will expand Mavis into new and existing markets, particularly in the Western U.S., where Pep Boys has a substantial retail presence.

Following the transaction, Mavis will operate more than 4,400 owned and franchised service center locations across the U.S. and Canada.

White Plains, NY-based Mavis currently has more than 3,600 locations under brands that include Mavis Discount Tire, Mavis Tires & Brakes, Midas, Express Oil Change & Tire Engineers, Brakes Plus, Tire Kingdom, NTB, Town Fair Tire and Tuffy. Its locations offer tires, brakes, oil changes, inspections and general vehicle repair services.

Mavis Co-CEO David Sorbaro said Pep Boys’ geographic presence and distribution network will strengthen the company’s nationwide supply chain.

“Together, we will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers,” Sorbaro said.

Founded in Philadelphia in 1921, Pep Boys serves individual drivers and commercial fleets. Icahn Enterprises acquired the business in 2016.

The companies expect the transaction to close in the coming months, subject to customary closing conditions and regulatory approvals.

The announcement comes amid signs of potentially significant consolidation in the automotive aftermarket for distribution.

On July 16, Big Brand Tire & Service announced it has struck a deal to acquire fellow distributor Belle Tire in a combination that will create one of the largest independent tire and automotive service platforms in the U.S., pushing Big Brand’s annual revenue past $1.5 billion.

Bloomberg reported in early July that O’Reilly Automotive submitted a roughly $10 billion cash bid to acquire Genuine Parts Company’s automotive parts business, which primarily operates as NAPA Auto Parts. The reported offer surfaced about five months after GPC announced plans to separate NAPA and its Motion-led industrial business into standalone public companies during the first quarter of 2027.

During GPC’s July 21 second-quarter earnings call, Chairman and CEO Will Stengel addressed the speculation, saying the company was “not currently in discussions with any competitor.” He added that GPC remains committed to maximizing shareholder value and would evaluate potential options in pursuit of that goal.

MDM Analysis

The Mavis-Pep Boys deal creates an even larger, more centralized customer for tire manufacturers, automotive aftermarket suppliers and distributors selling consumable parts, shop equipment and maintenance products into retail service networks.

Mavis will likely pursue standardized assortments, consolidated purchasing, greater inventory visibility and stronger pricing across its brands. Pep Boys’ distribution infrastructure may also help eliminate supply chain duplication and support more private-label or direct sourcing.

For local and regional distributors, that scale could bring greater pricing pressure, tougher service requirements and potential vendor consolidation. However, integrating nearly 800 locations will be complex, preserving opportunities for distributors that provide dependable regional fulfillment, emergency availability, product data and inventory management services.

Combined with the Big Brand Tire-Belle Tire combination and the reported O’Reilly bid for NAPA, the transaction shows how scale increasingly shapes the automotive aftermarket. Suppliers and distributors must be prepared to serve larger national accounts while protecting their value through responsiveness, specialization and operational reliability.