Icahn Automotive To Split Into 2 Companies: Parts And Service

Icahn Automotive To Split Into 2 Companies: Parts And Service

“As separate companies, parts and service will be best-positioned to focus on unique strategies, customers and business opportunities,” Icahn Automotive said in a news release.

Icahn Automotive Group announced that it is in the process of splitting into two independent companies.

Icahn Automotive will separate into a parts company led by Chris Cox, and a service company led by Brian Kaner. The two CEOs will report to Icahn Automotive’s board of directors and will be supported by their own leadership teams, as well as a shared service division led by CFO Michael Nevin.

“As separate companies, parts and service will be best-positioned to focus on unique strategies, customers and business opportunities,” Icahn Automotive said in a news release.

The parts company will include the retail and commercial lines of business of Auto Plus and Pep Boys.

“By focusing specifically on the parts sector, where our brands put us among the top 10 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,” said Cox, a veteran aftermarket executive with more than 40 years of experience leading commercial and retail parts teams.

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.

“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,” Kaner said. “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 each will 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 noted.

The company expects a short transition period, at the end of which the parts and service businesses will operate as separate companies.

You May Also Like

Monro, The Group Announce National Supply Agreement

The national supply program will begin in several pilot areas and will expand throughout the country in future weeks.

The Automotive Parts Services Group (The Group), a joint venture of The Pronto Network and Federated-Alliance, recently announced a national supply agreement with Monro Inc. on behalf of member distributors.

“The ability to provide national coverage through our collaboration with a single central billing process is key with national customers like Monro,” said Larry Pavey, CEO of the Automotive Parts Services Group. “By working together, our members are able to deliver the same benefits as retail competitors, as well as local expertise and dedication to the needs of professional service providers. This agreement provides members of The Group with the opportunity to offer premium parts and service to Monro and their more than 1,300 locations through an efficient, coast-to-coast system integration.”

Advance to Spin Off Worldpac as Company Reports Operating Loss

Advance also will divest its Canadian business and announced a $150 million cost-reduction program.

Fenix Parts Completes Acquisition of Brothers Auto Parts

Brothers is a full-service automotive recycler servicing the Indianapolis market.

Carquest by Advance Opens New Store in Virginia

It’s the fourth Carquest store owned by Magee Auto Parts LLC.

Fisher Auto Parts Acquires Berrodin Parts Warehouse

Berrodin Parts Warehouse has nine warehouse locations throughout Southeastern Pennsylvania and Northern Delaware.

Other Posts

Advance Shakes Up Executive Team, Launches Strategic Review

Former Home Depot exec Shane O’Kelly will take over as president and CEO effective Sept. 11.

Arnold Motor Supply Acquires Barron Motor Supply

Both century-old companies will combine to expand services for the Eastern Iowa market.

Mergers and Acquisitions Automotive Aftermarket
DealerShop Acquires Jobbers Automotive

Jobbers Automotive offers automotive paint, janitorial supplies, body shop equipment, bulk oil and WeatherTech products.

Factory Motor Parts Acquires Auto Plus Stores

FMP’s new locations will have inventories for all makes and all models combined with aftermarket brands as a result of the transaction.