IEP
Icahn Sells Pep Boys Chain, Holds Real Estate in $700M Deal
Article Summary
HOLD- Carl Icahn Enterprises L P.P. (NYSE: Icahn) is selling the Pep Boys auto-service business to Mavis Tire Express Services for $700 million in cash, retaining all underlying real estate including more than 700 owned and leased properties across the U.S. and Canada.
- The transaction gives Mavis control of nearly 800 Pep Boys locations nationwide but will not acquire underlying land or buildings, expanding Mavis' network from 3,600 locations to roughly 4,400 owned and franchised sites across the US and Canada, strengthening its presence in Western states, while Icahn will retain real estate and related brands including AAMCO Transmissions and Precision Tune Auto Care.
- Icahn keeps the properties while leasing them to the combined Mavis and Pep Boys operation, strengthening tenant credit profile for landlords and investors.
- The structure follows a classic net lease strategy, with most properties being freestanding sites in highly trafficked areas where Icahn sees lasting value as retail landscape continues shifting.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 1.3% | 25% | 20.0 ptsMinimal (1.3%) - Very weak |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 54.6% | 20% | 100.0 ptsMassive Upside (54.6%) - Target: $12.00 vs Current: $7.76 |
| Gross Margin % ? | 9.5% | 15% | 10.0 ptsRazor-Thin (9.5%) - Weak pricing power |
| Drawdown from 52-Wk High ? | -20.4% | 15% | 40.0 ptsMild Pullback (-20.4%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About IEP
- Icahn Enterprises L.P., through its subsidiaries engages in the investment, energy, automotive, food packaging, real estate, home fashion and pharma in the United States and internationally.
- The Investment segment invests its proprietary capital through various private investment funds; and it provides investment advisory, administrative, and back-office services to the investment funds.
- The Energy segment engages in refining and marketing petroleum in the form of gasoline, diesel, jet fuel, and distillates; renewable fuels business refines renewable feedstocks, such as soybean oil, corn oil, and other related renewable feedstocks into renewable diesel and markets renewable products; and nitrogen fertilizer business produces and markets nitrogen fertilizers in the form of urea ammonium nitrate and ammonia.
- The Automotive segment engages in repair and maintenance of automotive; sale of installed parts or materials related to automotive services; and sale of automotive aftermarket parts and retailed merchandise.
- The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings used to prepare and pack processed meat products.
- The Real Estate segment consists of investment properties, including land, retail, office, and industrial properties; and development and sale of single-family homes; and the operations of a resort and two country clubs.
- The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products.
- The Pharma segment offers pharmaceutical products and services; and develops approved therapies and product candidates.
- Icahn Enterprises L.P. was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.