RALEIGH, N.C. — Advance Auto Parts Inc. has struck a deal with Icahn Automotive Group L.L.C. to lease the retail space of 109 Pep Boys stores in California and convert them to Advance Auto Parts stores over the next nine to 12 months.
The leasing opportunity does not include Pep Boys Service Centers, Advance Auto said. The agreement with Pep Boys was signed earlier this month and will enable Advance to augment its omnichannel and national footprint in a key, strategic market.
Brian Kaner, CEO, Icahn Automotive Service Division, said this agreement "reinforces Pep Boys Service position as a leading repair and maintenance provider for consumers and fast-growing fleets on the West Coast.
"The agreement … will provide us with an opportunity to refresh our service center locations and reinvest in the market to meet emerging customer needs, particularly as demand for electric vehicle service grows in the region.
In addition, Mr. Kaner said, "there's a significant convenience advantage to having Pep Boys Service Centers located in proximity to a leading parts provider such as Advance — just another way Pep Boys is continuing to deliver on our promise to our customers: We go further to help you go farther."
Financial terms of the deal were not disclosed. Pep Boys has 143 retail locations in California.
The deal coincides with the completion of a 20-month-long restructuring of the Icahn Automotive business, which sought to separate the automotive aftermarket assets into independent aftermarket "Parts" and "Service" companies.
The Service company includes the automotive repair and maintenance businesses of Icahn's Pep Boys chain and its AAMCO and Precision Tune Auto Care franchise businesses, as well as several regional service centers the company has acquired.
The Parts company comprises the retail and commercial lines of business of both the Auto Plus and Pep Boys businesses.