Continental A.G. is acquiring Kmart Tyre & Auto Service, one of Australia’s largest tire and auto service suppliers with 258 retail outlets and roughly USD 300 million in annual sales. Continental has agreed to pay $255 million to buy the Kmart chain from Wesfarmers Ltd., a widely diversified consumer products and services group that has owned the business since 2007.
According to a company statement, Sydney-based KTAS is well represented in Australia’s densely populated East and Southeast coastal regions. The core business comprises passenger and light commercial vehicle tire sales and service, inspections and maintenance, as well as minor mechanical repairs to brakes, air-conditioning and suspension systems.
The Kmart business will complement Conti’s BestDrive retail network, which operates 61 outlets throughout the country. Conti has been building the BestDrive network since 2011.
KTAS has existed as separate business since 1992, when it was set up as an autonomous division of Kmart Australia. KTAS features Bridgestone, Dunlop, Goodyear, Kumho, Pirelli and Diamondback brand tires. The company claims to be Australia’s largest retailer of Goodyear-brand tires and operates a mobile tire-fitting service in the Melbourne and Sydney metro areas.
Image courtesy of Continental.