From the New York Business Journal

When it comes to buying auto parts companies, don’t expect Carl Icahn to step on the brakes.

The billionaire investor has been eager to load up his portfolio with thousands of small- and medium-sized repair-and-installation chains. Since 2015, he has spent more than $2 billion rolling up various aftermarket parts companies.

This week, he picked up American Driveline Systems (ADS) from private equity firm Transom Capital Group. ADS is the franchisor of AAMCO auto service center chain and Cottman Transmission & Total Auto Care service centers.

Both companies were placed under the umbrella of Icahn Automotive Group (IAG).

Pep Boys, which the 81-year-old bought after ensuing in a bidding war with tire maker Bridgestone Americas, is the main entity within IAG. Other companies under Icahn’s watch include Mathis Tire, Auto Plus, Just Brakes, Precision Tune Auto Care and Federal-Mogul, a maker of aftermarket equipment and products.

The goal is to force retailers to buy products from his own distributors, which buy their parts from Federal-Mogul and other manufacturers he owns. This arrangement would greatly increase the profits of the repair shops that install auto parts.

Eventually, Icahn plans to debut IAG in an initial public offering.

Icahn’s auto concentration isn’t exclusive to parts distributors, or service and collision centers. The CEO of Icahn Enterprises owns 35 percent of Hertz Global Holdings and about 3 percent of ride-hailing company Lyft, the report points out.


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