Mavis, Midas and Pep Boys dominate the $211 billion car repair market as the average U.S. vehicle reaches a historic 13 years old. The Sorbaro brothers, who took over Mavis in 1985, have pursued an aggressive acquisition strategy, buying Midas, Tuffy, and Tire Kingdom. This summer, Mavis paid $700 million to acquire Pep Boys from Icahn Enterprises.
Midas President Lenny Valentino Jr. notes the aging fleet benefits their business, as nearly two-thirds of owners keep cars for at least five years. Mavis retains local management and technicians at acquired locations, including Bronx franchise owner Scott Frankland. The company leverages corporate scale through real-time supply-chain data, a centralized customer-service team, and an in-house real-estate team scouting prime locations.
With new car prices hovering around $50,000, analysts estimate one million buyers have dropped out of the market, driving demand for repair services. Chains are expanding into complex engine and electrical work to service the complex, older fleet.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing