BayPine LP is in the lead to acquire Mavis Tire Express Services Corp for more than $6 billion, including debt, in what would be the private equity firm's biggest deal since its inception last year, people familiar with the matter said on Tuesday.
BayPine, which was formed by Silver Lake Partners co-founder David Roux and former Blackstone Group Inc executive Anjan Mukherjee, has submitted the highest bid in the auction for the U.S. car service chain operator, the sources said. It is partnering with buyout firm TSG Consumer Partners LP on its offer, the sources said.
The deal would represent a bet that Mavis is set to bounce back from the financial fallout of the COVID-19 pandemic, which weighed on its sales as customer traffic declined.
Golden Gate Capital, the private equity firm that holds a majority stake in Mavis, is still negotiating the final terms of a deal with BayPine, and it is possible that the outcome could change, the sources said.
The sources requested anonymity because the matter is confidential. Golden Gate declined to comment, while Mavis and BayPine did not immediately respond to requests for comment.
Mavis is the parent of two retail chains, Mavis Discount Tire Inc and Express Oil Change & Tire Engineers. They provide tire, oil change, and mechanical services at more than 1,100 service centers across 27 states, according to Golden Gate's website.
Golden Gate invested in Express Oil Change & Tire Engineers in 2017 and then acquired and merged it with Mavis Discount Tire the following year.
Headquartered in Boston, BayPine started raising its first buyout fund last year.
(Reporting by Greg Roumeliotis in New York and Joshua Franklin in New York; Editing by Tom Hogue)