June 5, 2017—Carl Icahn is looking to acquire Precision Auto Care’s 250 service locations. With that deal, Icahn Automotive Group said Friday it will now control more than 1,000 auto repair shops, with the idea that they will buy products directly from his own distributor, Auto Plus, instead of the national car parts chains, sources told the New York Post.
Auto Plus, in turn, will buy its parts from Icahn-owned Federal-Mogul and other manufacturers. Icahn’s pitch is that the new arrangement will greatly increase the profits of the repair shops that install auto parts, sources said.
“He wants to do thousands,” a source said, anticipating more acquisitions of small- and medium-size repair and installation chains. “Let’s assume Icahn becomes the only major national installer chain.”
Icahn’s chain will offer warranties to customers, the source said, generating repeat business.
“Vendors are going to figure out ways to work with Icahn directly [through his distributor],” the source said.