Pep Boys buys Memphis-based Mathis Tire

MEMPHIS — Pep Boys — Manny, Moe & Jack has acquired Mathis Tire & Auto Service and Direct Tire Distributors in Memphis, establishing a retail position in that market for the first time with a dozen locations and a 6,000-unit warehouse.

Pep Boys, part of Icahn Enterprises L.P. since early 2016, said it will transition the Mathis and Direct Tire locations to Pep Boys Service & Tire Centers signage and expand the hours of and the services offered at the 12 locations, including oil changes, brake repair and suspension work in addition to tire installations.

Financial terms of the deal are not being disclosed. The transaction affects 90 employees.

Bill Ihnken, president of service for Pep Boys, said the acquisition "allows us to enter into a new market with Pep Boys' Service business while leveraging well-established locations with significant growth potential."

Mr. Ihnken said the deal positions Pep Boys as the third-largest automotive repair and maintenance chain in Memphis. Pep Boys has seven other stores in Tennessee, but none in the Memphis area.

Icahn Automotive Group L.L.C. CEO Daniel A. Ninivaggi said the deal puts Pep Boys in a position to serve customers throughout Memphis and its suburbs, including several communities in Mississippi.

In addition, he said, the purchase will allow Pep Boys to leverage Mathis Tire's warehouse to launch a tire distribution operation in Memphis and expand its existing tire wholesale business.

"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.," Mr. Ninivaggi concluded.

Pep Boys describes Mathis Tire as a Goodyear dealer in business for 24 years, with nine locations. In 2003, it purchased Direct Tire, a three-shop Michelin Tire dealer and tire wholesaler that has operated in the area for nearly 40 years.

This is Pep Boys' second major acquisition of 2017. In January the Philadelphia-based retailer bought 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.