Icahn Enterprises to Sell Pep Boys to Mavis for $700 Million, WSJ Reports

Icahn Enterprises LP (NASDAQ: IEP) has reached an agreement to sell its auto-service chain Pep Boys to Mavis Tire Express Services for approximately $700 million in cash, according to a report from The Wall Street Journal. The deal, which could be announced as soon as Tuesday, was attributed to people familiar with the matter.

Reported Deal Structure

The transaction allows Icahn Enterprises to divest the operational side of the auto-service business while retaining key assets. According to the report, the terms of the sale include:

• A cash payment of approximately $700 million.
• Icahn Enterprises will keep the real estate assets associated with the Pep Boys locations.
• The company will also retain its other automotive service brands, AAMCO Transmissions and Precision Tune Auto Care.

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Strategic Context

This sale marks a notable shift from Icahn's initial investment in the auto parts and service sector. Icahn Enterprises acquired Pep Boys in 2016 for $1 billion after a high-profile bidding war with Japanese tire giant Bridgestone.

The reported sale price represents a significant discount to the original purchase price for the business operations. For investors, this move appears to be a strategic decision to unlock capital from the service chain while holding onto the long-term value of the underlying real estate portfolio. The buyer, Mavis Tire Express Services, is owned by private equity, signaling continued consolidation in the U.S. auto repair market.