Investing.com -- Shares in Pep Boys-Manny Moe & Jack (N:PBY) soared in after-hours trading on Friday after billionaire activist investor Carl Icahn declared a 12.1% stake in the Philadelphia-based auto parts retailer.
Icahn, whose net worth has been estimated at as much as $21.7 billion, has taken significant controlling positions in a wide variety of corporation including: Time Warner Inc (N:TWX), Viacom Inc (O:VIA), Netflix Inc (O:NFLX) and Motorola (N:MSI)I in an illustrious career that has spanned more than five decades.
Along with the disclosure, Icahn recommended a sale of Pep Boys to Auto Plus, a company that is owned by his investment vehicle Icahn Enterprises. Icahn may be quietly trying to add to his automotive empire. In February, Icahn Enterprises acquired automotive parts distributor Beck/Arnley Worldpart from Quebec-based Uni-Select for $340 million.
In October, Pep Boys announced that it entered into a definitive merger agreement with Bridgestone in an all-cash transaction for $835 million. Pep Boys, which was founded in 1921, has more than 7,500 service bays in 35 U.S. states and Puerto Rico. In the second quarter, the company said its sales increased by 0.1% to $525.8 million, amid increases in comparable merchandise sales and comparable service center revenue.
“We continue to improve our operating profit by increasing gross profit margins and controlling costs,” CEO Scott Sider said when the quarterly results were released in early-September. “And while we are pleased to report the fourth consecutive quarter of positive comparable store sales, I believe our biggest opportunity is to grow top-line revenue.”
Icahn, meanwhile, has been pointed as Donald Trump's nominee for U.S. Treasury Secretary if the Republican presidential candidate winds up winning the 2016 election.
Shares in Pep Boys surged 1.40 or 8.92% to 15.70 in after-hours.