Australia-listed conglomerate Wesfarmers today announced it has agreed to sell its Kmart Tyre and Auto Service (KTAS) business to Continental AG for $350 million, AsiaPEVC.com first reported.
On successful completion of the transaction, Wesfarmers estimates it will report a pre-tax profit on sale of approximately $270 million to $275 million, subject to completion adjustments.
The sale is subject to certain consents and approvals including from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.
KTAS is one of Australia’s largest tyre, automotive service and repair retailers. The business has 258 stores across Australia with over 1,200 employees. It is also the largest single employer of apprentice motor mechanics in Australia.
Continental, based in Germany, will use the KTAS name and logo for a transitional period following the sale. Its five divisions in 2017 generated sales of €44 billion and it currently employs more than 243,000 people in 60 countries.