Kmart finalises sale of mechanic
WESFARMERS has completed the $350 million sale of its Kmart Tyre and Auto to German manufacturer Continental AG.
The retail conglomerate, which owns Coles, Bunnings, Officeworks and Kmart, yesterday announced that the deal, initially unveiled in August, had been finalised.
It will add $270 million in pre-tax profit to the group’s 2018-19 half-year results, the company said.
Wesfarmers managing director Rob Scott said the sale of the business was in the best interests of shareholders.
“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,” Mr Scott said.
Kmart Tyre and Auto Service is one of the country’s largest auto service businesses with 258 stores and more than 1200 employees.
The sale is the latest move by Mr Scott to restructure the Perth-based conglomerate.
On November 15 Wesfarmers’ shareholders will vote at its annual meeting whether to approve the $20 billion demerger of supermarket chain Coles.
In June, Wesfarmers announced it was selling its 40 per cent interest in the Bengalla Joint Venture thermal coal mine project to partner New Hope Corporation for $860 million.