Wesfarmers has just sold Kmart Tyre and Auto Service to a German company
Wesfarmers has sold Kmart Tyre & Auto Service (KTAS) to German automotive manufacturer Continental AG for $350 million.
The workshops business is the fourth biggest tyre retailer in Australia with 258 stores and 1,200 employees.
The deal is part of a series of divestment for Wesfarmers, where they estimate a pre-tax profit on sale of between $270 million and $275 million.
Wesfarmers Managing Director Rob Scott says the agreement crystallises value from the business turnaround since it was acquired as part of the Coles Group in 2007.
“We believe that the divestment is in the best interests of Wesfarmers’ shareholders, while giving the employees and customers of KTAS the opportunity to join a highly complementary business in Continental,” he says.
“Continental’s automotive industry expertise will further strengthen the business’ customer offering.
“I thank all of the KTAS team for their outstanding efforts in growing and improving the business under Wesfarmers’ ownership and, in advance, for their continued focus and commitment during the transition to new ownership.”
14 Aug 2018
