Pep Boys has acquired Mathis Tire & Auto Service and Direct Tire Distributors in Memphis, Tenn., making the company the third-largest automotive service chain in the city.
“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.”
A Goodyear dealer in business for 24 years, Mathis Tire has nine retail locations. The dealership purchased Direct Tire, a three-shop Michelin dealer and tire wholesaler, in 2003.
With the acquisition, Pep Boys will expand the hours and the services at the 12 locations as they transition to Pep Boys Service & Tire Centers. The stores will offer a full range of services including 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 A. 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.”
Pep Boys has more than 930 locations in 35 states and Puerto Rico.