Continental to acquire Kmart Tyre and Auto Service
Continental is poised to acquire Kmart Tyre and Auto Service in a deal worth $350 million to boost its tyre dealership network across Australia.
Continental has announced it will purchase Kmart Tyre and Auto Service (KTAS) from its current owners, Wesfarmers Limited, for $350 million. There are 258 KTAS outlets employing more than 1200 staff. To date, Continental has been represented in Australia through its Best Drive and Continental branded retail network.
Speaking at the company’s headquarters in Germany, Nikolai Setzer, member of the Executive Board of Continental AG responsible for the Tyre division, said: “Australia is a highly promising sales market for Continental.
“The acquisition of KTAS marks a major expansion in our presence on the Australian tyre market. This move is part of our ‘Vision 2025’ growth strategy through which we are systematically expanding the worldwide presence of our Tyre division.”
The core business of KTAS comprises passenger and light commercial vehicle tyre sales and service, inspections and maintenance, as well as minor mechanical repairs to brakes, air-conditioning and suspension systems.
“We are very pleased to further strengthen our commitment to the Australian market through the acquisition of KTAS – a very successful and well-known tyre and auto services chain in Australia,” said Ferdinand Hoyos, Head of PLT Tyre Business Asia Pacific.
“Together with the current management team and our new colleagues at KTAS we are looking to drive forward what is already a strong network of outlets and expand their product portfolio,” he added.