Icahn Automotive Is Splitting Into 2 Companies
A key piece of Icahn Automotive Group LLC’s multiyear transformation plan is underway as the company is splitting into two aftermarket companies: one devoted to parts and the other to service.
As separate companies, the parts and service units will be best positioned to focus on unique strategies, customers and business opportunities, Icahn Automotive stated in a press release.
The independent companies will be led by Chris Cox, CEO-Parts and Brian Kaner, CEO-Service.
Cox and Kaner will report to Icahn Automotive’s board of directors and be supported by their own leadership teams, as well as a shared service division led by Chief Financial Officer Michael Nevin.
The parts company will include the retail and commercial lines of business of both Auto Plus and Pep Boys.
Parts CEO Chris Cox, a veteran aftermarket industry executive with more than 40 years of experience leading commercial and retail parts teams said: “By focusing specifically on the parts sector, where our brands put us among the top ten commercial auto parts distributors in the U.S., we will continue to capitalize on industry growth, expand and integrate our customer programs, and invest aggressively in core markets where a solid base of business, excellent customer service capabilities, and one of the most experienced teams in the industry have us in a strong competitive position.”
The service company will include the automotive repair and maintenance businesses of Pep Boys, AAMCO and Precision Tune Auto Care, as well as several regional service centers the company has acquired.
Service CEO Brian Kaner said: “As the number of vehicles in operation continues to grow, and drivers continue to keep their cars longer, we have a tremendous opportunity to expand how we serve our DIFM customers. Our fast-growing fleet business stands to continue its growth from the expansion of ride-hailing, last mile delivery and other fleets. As an independent company focused on service, we’ll have more resources to invest in our core strategic priorities, including continuing to grow our national footprint, investing in new vehicle technology, technician training and career development, and the creation of a best-in-class service model.”
As part of the separation plan, the parts and service businesses will each make adjustments to their store networks, and continue to streamline and decentralize the organizational structure, empowering local leadership to better serve their unique markets. Icahn Automotive says it expects a short transition period at the end of which the parts and service businesses will operate as separate companies.
The company did not specify a timeline for completing the separation process.
Icahn Automotive, a segment of Carl Icahn’s larger Icahn Enterprises L.P., consists of more than 2,000 company-owned and franchise locations and 25 distribution centers throughout the U.S., Canada and Puerto Rico. Icahn Automotive brands are Pep Boys automotive aftermarket retail and service chain, Auto Plus automotive aftermarket parts distributor, Precision Tune Auto Care owned and franchised automotive service centers, and AAMCO Total Auto Care franchised service centers. The company also is the licensor of Cottman Transmission and operates under several local brands. The businesses of Icahn Automotive total over 22,000 employees.
Icahn Automotive announced a plan to restructure its operations in May 2019. For details, read: “Icahn Automotive Will Focus on Tire Inventory and Tire Distribution.”