Sorbaro Brothers Dominate $211 Billion Auto Repair Market Through Acquisitions
Brothers David and Stephen Sorbaro have built Mavis into the largest auto repair chain in the U.S. through continuous acquisitions, with approximately 4,400 locations covering nearly all states.
The two took over their parents' tire shop in suburban New York in 1985, initially downsizing to focus on core business before expanding by acquiring brands such as Tuffy, Tire Kingdom, NTB, and Midas.
In 2026, they acquired the Pep Boys operating business from Icahn Enterprises for about $700 million in cash, adding nearly 800 locations, bringing the total network to over 4,400, covering the U.S. and Canada.
The average age of cars in the U.S. has reached a historic high of about 13 years, with rising new car prices and interest rates prompting owners to extend their holding periods. The repair market is estimated to be about $211 billion this year, expected to exceed $280 billion by 2031.
Mavis's revenue is projected to grow nearly 20% this year to about $750 million, with plans to open up to 160 new stores annually, aiming for a long-term goal of 10,000 stores while retaining local management for each brand.
Market dynamics show that owners are increasing repair spending due to longer holding periods and more complex vehicles, directing funds towards large chains; Mavis benefits from supply chain integration and coverage through acquisitions, while independent shops and dealer service departments face competitive pressure. Icahn retains Pep Boys real estate to collect rent.
The company had considered an IPO but has currently shelved those plans, maintaining local brand identities for stores to preserve customer recognition.
Source: Public Information
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After taking over the family tire business in 1985, the Sorbaro brothers initially downsized before expanding, completing a national layout through acquisitions of brands like Midas and Pep Boys, consistent with the model of early regional tire shops integrating into national chains, while retaining the acquired brand's operational teams to reduce integration resistance.
Capital enters by acquiring operational networks with cash rather than real estate, with the $700 million Pep Boys deal expanding coverage in the West, concentrating resources on store density and supply chain synergy, motivated by capturing stable repair demand from rising vehicle age and creating scale barriers.
This is similar to chain mergers and acquisitions in the retail and service industries, such as early quick repair chains absorbing independent shops. They are currently in the expansion phase from regional players to a national leading platform, prioritizing control over store numbers and geographic coverage rather than a single brand.
Essentially, this involves capital concentration and industrial chain restructuring: continuously acquiring to unify dispersed repair shops into a single network. The mechanism is that longer vehicle ages and increased vehicle electronic complexity raise repair frequency and complexity, allowing large chains to dilute procurement and management costs, thus concentrating the originally fragmented service market into a few platforms and raising entry barriers.
ABAB News · Law of Cognition
The older the vehicle, the larger the repair market
Scale is a moat in the service industry
Acquire networks while retaining brand identity