Icahn Enterprises LP (IEP, Financial) stock was up 0.21% on Monday and 5.30% in the trailing 30-day period. The company's stock continues to gain strength on strong global stock markets and acquisitions in the past month.
Icahn Automotive Group LLC's Pep Boys subsidiary purchased Newpark Auto Service in Newark, California, in mid-September. The acquisition will allow the Pep Boys brand to expand its service offerings in San Francisco.
Newpark's operation, consisting of seven bays, will transition into a new service and tire center for the company. The acquisition allows Pep Boys to provide total care services to residents in Newark and the surrounding areas.
Icahn Automotive Group was developed by Carl Icahn (Trades, Portfolio) to invest in and control automotive service and aftermarket part companies. The division is part of Icahn's $19.9 billion in total investment value in 2017, according to Trade 24.
Pep Boys operates nearly 1,000 locations and 9,000 service bays across the U.S.
The company's stock rallied over 1% on news of the acquisition.
Icahn Enterprises also acquired American Driveline Systems a week ago. The company was acquired from Transom Capital Group. American Driveline Systems is the franchiser of Cottman Service Centers and AAMCO.
The acquisition is a major step in Icahn's goal of expanding its national automotive service center division. The acquisition adds 680 locations to the company's service center portfolio.
“I believe that the automotive aftermarket service industry is undergoing secular change driven by increased vehicle complexity, advances in technology, as well as the growth of automotive fleets, including ride-sharing and car-sharing networks. These changes will continue to offer, in my opinion, extremely attractive and unique investment opportunities. With our presence throughout the automotive aftermarket value chain, Icahn Enterprises is positioned to capitalize on these trends," states Icahn.
The acquisition adds the country's No. 1 and No. 2 transmission repair chains to the Icahn portfolio. American Driveline Systems has service centers in 47 states and three provinces. The company boasts 60% brand awareness in these areas.
Icahn also made the news in early September when he announced the sale of his Fontainebleau resort in Las Vegas. The unfinished resort sold for $600 million, nearly four times the amount he spent on it just seven years ago.
Icahn famously invested in buying debt from the Stratosphere resort in Las Vegas in the '90s. He purchased the surrounding land, too, and sold that portion of his holdings to Goldman Sachs (GS, Financial) for $850 million in June.
Disclosure: The author does not own any shares in any of the listed equities.
