Australian conglomerate company Wesfarmers has concluded the sale of its Kmart Tyre and Auto Service (KTAS) business German automotive firm Continental for $250.06m.
Based in Australia, KTAS is a tyre, automotive service and repair retailer that currently operates 258 stores across the country. It has more than 1,200 employees to serve its customers.
The sale deal was announced on 12 August and is expected to improve value for shareholders from the business turnaround.
While signing the agreement, Wesfarmers Managing Director Rob Scott said: “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.
“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.”
As part of the deal, Continental will use the KTAS name and logo for a transitional period.
Based in Germany, Continental currently operates five divisions with more than 243,000 employees in 60 countries.
Commenting on the completion of the transaction, Scott said: “With the sale now complete, I again thank the KTAS team for their efforts in growing and improving the business under Wesfarmers’ ownership and for their focus and commitment during the transition to new ownership.”
Last month, Wesfarmers agreed to vote in favour of the multi-billion dollar proposed demerger of supermarket chain Coles.