Pep Boys has continued its growth in the service and tire distribution business with the acquisition of Mathis Tire & Auto Service and Direct Tire Distributors in Memphis, Tennessee.
“We are excited about this acquisition of a strategic 12-location automotive service chain and tire wholesale business, which positions Pep Boys as the third-largest automotive repair and maintenance chain in Memphis,” said Bill Ihnken, Pep Boys’ president of service. “It allows us to enter into a new market with Pep Boys’ Service business while leveraging well-established locations with significant growth potential.”
Mathis Tire, a Goodyear dealer in business for 24 years, has nine locations. In 2003, Mathis Tire purchased Direct Tire, a three-shop Michelin Tire dealer and tire wholesaler that has operated in the area for nearly 40 years.
Pep Boys will expand the hours and the services performed by the 12 locations as they are transitioned to Pep Boys Service & Tire Centers, offering a full range of services such as oil changes, tire installations, brake repair and suspension work.
“With the help of the more than 90 experienced team members we are welcoming to our organization, Pep Boys has the opportunity to serve the automotive repair and maintenance needs of customers across the city of Memphis and its suburbs, including several communities in Mississippi,” said Daniel Ninivaggi, CEO of Icahn Automotive Group LLC, the parent company of Pep Boys. “In addition, this purchase includes a large tire warehouse, which houses over 6,000 tire units. We will grow its existing tire wholesale business and leverage this warehouse to launch a tire distribution operation in Memphis.”
Ninivaggi concluded, “This acquisition fits squarely into Pep Boys’ long-term strategy to grow its Service and tire distribution business in target markets across the U.S.”