Hanover, Germany – Continental is to acquire Kmart Tyre and Auto Service (KTAS), one of Australia’s largest tire and auto service suppliers, Continental announced 13 Aug.
The AUD350-million (about €227 million) acquisition from Wesfarmers Ltd “will greatly reinforce the corporation’s tire dealership network in Australia, the Hanover-based group said.
The deal “marks a major expansion in our presence on the Australian tire market,” said Nikolai Setzer, member of the executive board of Continental AG responsible for the Tire division.
“This move is part of our ‘Vision 2025’ growth strategy through which we are systematically expanding the worldwide presence of our Tire division,” added Setzer.
With 258 branches, Sydney-based KTAS has more than 1,200 employees. Its 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.
With its existing BestDrive retail network, Continental said it aims to complement the tire, car parts and repair business with services for retail customers as well as for fleet operators in the Australian market.
The group, which operates four tire production plants in the Asia-Pacific region, has to date been represented in Australia through the Best Drive and Continental branded retail network.
Under its Vision 2025 strategy, Continental recently invested in more capacities in tire production at existing plants and in construction of a new passenger and light truck tire production plant Thailand.