The West Australian
Wesfarmers has agreed to sell its Kmart tyre and auto services business to German automotive supplier and tyre manufacturer Continental for $350 million.
The owner of Bunnings and Coles chains said it would report a pre-tax profit on the sale of between $270 million and $275 million following completion of the deal.
More than 1200 people are employed at 258 auto centres across Australia, including 26 between Joondalup and Rockingham.
Wesfarmers managing director Rob Scott said the divestment “crystallises value” for shareholders from the business turnaround since KTAS 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,” Mr Scott said.
“Continental’s automotive industry expertise will further strengthen the business’ customer offering.”
The deal is subject to approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.