Mavis Tire Express Services Corp. has entered into an agreement to acquire Pep Boys from Icahn Enterprises L.P. for approximately $700 million in cash, subject to customary purchase price adjustments.

Pep Boys operates nearly 800 automotive service locations across the United States, offering tire sales, vehicle maintenance, oil changes, and repair services. Following the acquisition, Mavis said its network will expand to more than 4,400 service centers across the U.S. and Canada, while increasing its presence in the western United States, where Pep Boys has a significant footprint.

“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," said David Sorbaro, co-chief executive officer of Mavis. "Together, we will create a stronger, more geographically diverse platform with the scale and capabilities to provide dependable service to even more customers and create meaningful opportunities for employees."

As part of the transaction, Icahn Enterprises will retain the real estate previously transferred from Pep Boys, along with the AAMCO Transmissions and Precision Tune Auto Care businesses.

The companies said the acquisition is expected to close in the coming months, subject to customary closing conditions.

Last month, Pep Boys also expanded its maintenance relationship with Merchants Fleet, which said it would direct more maintenance volume to the retailer's nearly 800 locations to improve service consistency and turnaround times for fleet customers.