Conti in talks to sell French retail arm to equity firm

Le Meux, France – Continental has entered “exclusive negotiations” with ASC Investment over the sale of ContiTrade France, its 1,200-employee French retail operation.

As part of the transaction, the BestDrive France operation would transition from “a hybrid to a fully franchised distribution structure,” said a 9 Dec announcement.

ContiTrade is the trade division of Continental and manages the network of BestDrive tire and automotive service centres.

The planned deal covers more than 130 company-owned BestDrive outlets, two retreading facilities, plus support activities, said Continental.

According to the German group, all outlets included in the sale “would remain part of Continental’s BestDrive France network under a franchise contract.”

Staff overseeing BestDrive’s franchise organisation and the FleetPartner programme would be integrated into Continental’s marketing and sales operations in France.

Continental said the sale would complete BestDrive France’s transition to a fully franchised model: enabling it to serve individual and fleet customers through franchisees operating more than 200 service outlets nationwide.

ASC, an investment firm specialising in corporate carve-outs, said it intends to operate the outlets as an “independent and agile activity,” focused on providing a broad portfolio of services.

Working with the current management team, ASC aims “to leverage the existing footprint of ContiTrade France and its employees’ skillsets.”

The proposed transaction remains subject to consultation with the Comité Social et Économique (CSE), approval from Continental AG’s supervisory board, and the signing of a sale and purchase agreement.