Icahn completes Precision Tune acquisition

PHILADELPHIA — Icahn Automotive Group L.L.C. has completed its $37 million acquisition of Precision Auto Care Inc., franchisor of the Precision Tune Auto Care automotive service business.

The deal covers Precision Auto Care's franchising business, which covers roughly 250 Precision Tune stores in the U.S. — including 43 locations owned by Precision Auto — and 65 more locations outside the U.S., including five in Mexico.

Icahn Automotive CEO Daniel A. Ninivaggi said the deal is a "significant step in our strategy to expand our national automotive service network, and enhances our existing store footprint in support of our goal to provide customers with premium parts and services at a great value."

Precision Auto Care CEO Robert Falconi and his executive team are expected to continue under Icahn Automotive's ownership.

For the nine months ended March 31, Precision Auto Care reported net income of $640,000 on revenue of $21.8 million. Franchise royalties accounted for 28 percent of revenue, with the company-owned store operations the rest.

Icahn Automotive's existing holdings comprise more than 1,000 Pep Boys and Auto Plus stores. Icahn Automotive is a wholly owned subsidiary of Icahn Enterprises L.P.

Separately, Pep Boys recently acquired AutoMaster Service Center in Southington, Conn., an eight-bay auto repair shop in business since 1998 under family ownership. It will be converted into a full-service Pep Boys Service & Tire Center.

Pep Boys did not disclose terms of the deal or identify the previous owners.

Earlier, Pep Boys acquired PJ's Auto & Tire Center in Franklin Square, N.Y., and opened a Service & Tire Center in Bordentown, N.J., increasing its presence in the New York and Philadelphia metro markets.