Icahn Acquires 10-Store Tire Dealership in Wash.
Dec. 22, 2017—Carl Icahn's automotive business has acquired a 10-store tire dealership in the state of Washington, Modern Tire Dealer reports.
The stores will be rebranded under the Pep Boys brand.
In June, Icahn Automotive Group acquired 250 Precision Tune Auto Care locations, giving Icahn control of more than 1,000 auto repair shops.
As Jim Lang, president of Lang Marketing, pointed out to Ratchet+Wrench back in August, Icahn is practicing vertical integration. Contrary to horizontal integration, where firms control one component of a market or process, vertical integration engages multiple segments of production.
So, as the owner of Pep Boys and Just Brakes as well, Icahn's intentions were clear to Lang: Those 1,000 shops will now buy their products from the Icahn-owned Auto Plus, which will buy its parts from the Icahn-owned Federal-Mogul, stretching Icahn’s pull in the marketplace.
In total, Icahn has pushed $2 billion into the auto parts industry.
A spokeswoman for Icahn Automotive Group LLC confirmed the purchase of Elliott Tire & Auto Service Inc., with four stores in Seattle, plus locations in Everett, Kent, Kirkland, Mt. Vernon, Woodinville and Yakima, Wash.
Elliott Tire was founded in 1978, and offered tire sales as well as a full range of automotive services.