Pep Boys acquires Just Brakes

PHILADELPHIA (Jan. 23, 2017) — Pep Boys – Manny, Moe and Jack has acquired Just Brakes L.L.C., an automotive repair and maintenance chain with 134 stores throughout the U.S. southern tier, boosting the number of Pep Boys locations to more than 900.

Financial terms of the deal were not disclosed. Pep Boys is owned by Icahn Enterprises L.P.

Acquiring privately held Just Brakes will allow Pep Boys to strengthen its presence in target markets, including Dallas and Atlanta, and "demonstrates our steadfast commitment to growing our service business," said Pep Boys President and CEO Brent Windom.

Pep Boys intends to convert Just Brakes' locations to its Pep Boys Service & Tire Center format and has retained the services of Bill Ihnken, former CEO of Just Brakes, to become Pep Boys' president of service, Mr. Windom said.

"We look forward to working together to leverage the combined strengths of our companies, including our joint focus on taking care of customers,…offering a full range of services, such as oil changes, tire installations, brake repair and suspension work," Mr. Windom said.

Pep Boys said it will welcome Just Brakes' 500-plus employees to continue under its ownership. Just Brakes' locations are in 14 major metro markets in eight states, stretching from Nevada to Florida.

Mr. Ihnken called the deal an "exciting announcement for the Just Brakes team. Being part of Pep Boys means we have the resources required to truly achieve our goal of providing total car care as we transition to the Pep Boys format.

"This conversion will afford growth opportunities to our employees and help our stores thrive while keeping our focus on providing customers the best experience and value," he added.

Mr. Ihnken, a former TBC Corp. executive, was part of an acquisition team that bought Just Brakes in 2013.

"The mission of Pep Boys to be "people taking care of people… and their cars' remains our priority as we implement our national growth strategy," Mr. Windom said, "which has gained significant momentum with this substantial expansion in the service business.

"In the coming year, we look forward to continuing to increase our network of stores and service bays across the country as we execute our vision to be the 'first choice, expert service' provider for our family of customers at every level of the automotive aftermarket."

Pep Boys and Just Brakes had disclosed last October that Pep Boys would start supplying Just Brakes with tires through its Pep Express Parts wholesale delivery business. Just Brakes had announced in June 2016 that it was adding tires to the product mix at all of its stores after a year-long trial at selected stores in Florida.

Mr. Ihnken spent 12 years with TBC, including a time as president and COO of TBC's company-owned store division, which includes Tire Kingdom, National Tire & Battery (NTB) and Merchant's Tire & Auto Centers. Prior to joining TBC in 2000, Mr. Ihnken held senior level retail positions at the former Michel Tire Co.

Icahn acquired Pep Boys in late 2015 in a $1.03 billion deal that was concluded after a several-week bidding war with Bridgestone Americas.