Icahn To Retain Real Estate In $700M Sale Of Pep Boys
A major conglomerate is offloading one of the nation’s most recognizable auto service chains, but not some of the real estate it occupies.
Mavis Tire Express Services is purchasing Pep Boys from Carl Icahn's Icahn Enterprises for $700M in cash, the buyer announced Tuesday.
The brand, which has 800 locations, will allow New York-based Mavis to expand its footprint across North America, particularly in the western U.S., where Pep Boys has a strong presence.
“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,” Mavis co-CEO David Sorbaro said in a statement. “Together, we will create a stronger, more geographically diverse platform.”
Icahn will retain some of the real estate, which it acquired through its $1B purchase of Pep Boys in 2016 following a bidding war with Japanese tire manufacturer Bridgestone. Most of the real estate associated with Icahn’s auto businesses was transferred to a separate division last year, The Wall Street Journal reported.
The conglomerate is also holding on to its Aamco Transmissions and Precision Tune Auto Care business.
Icahn Enterprises had a net asset value of $3.4B as of March 31, with holdings in the energy, automotive, food packaging, real estate, home fashion and pharmacy industries. It reported a net loss of $459M in the first quarter, including $20M in losses from its automotive segment.
Some of Icahn’s auto-centric businesses have struggled since its acquisition of Pep Boys.
It sold off parts manufacturer Federal-Mogul in 2018 after holding it for about a decade. Auto Plus, another Icahn subsidiary, filed for bankruptcy in 2023.
The Pep Boys sale came after an Icahn subsidiary listed the former Trump Plaza Hotel and Casino in Atlantic City for sale in September. No asking price was provided for the 10.7-acre parcel at 2201 Boardwalk, where the Trump-branded property shuttered in 2014.
