Continental AG is set to acquire Kmart Tyre and Auto Service (KTAS), one of Australia’s largest tire and auto service suppliers.
The tiremaker and technology company said the acquisition would help strengthen its tire dealership network in Australia. KTAS is being sold by Wesfarmers Limited of Australia. The deal is worth AUD350 million (almost $256 million).
“Australia is a highly promising sales market for Continental,” said Nikolai Setzer, member of the executive board of Continental AG responsible for its tire division. “The acquisition of KTAS marks a major expansion in our presence on the Australian tire market. This move is part of our ‘Vision 2025’ growth strategy through which we are systematically expanding the worldwide presence of our Tire division.”
KTAS currently has 258 branches with many located in the east and southeast coastal regions of Australia. The company, which has more than 1,200 employees, is based in Sydney. The core business of KTAS is comprised of 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, Continental says.
“We are very pleased to further strengthen our commitment to the Australian market through the acquisition of KTAS – a very successful and well-known tire and auto services chain in Australia,” said Ferdinand Hoyos, head of the company’s PLT tire business in the Asia Pacific region. “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.”
In the future, Continental, with its already existing BestDrive retail network, said it is aiming to complement its tire, car parts and repair business with services for retail customers as well as for fleet operators in the Australian market.
Continental’s Tire operates four tire production plants in the Asia-Pacific region. To date, Continental has been represented in Australia through its Best Drive and Continental branded retail network.
As part of its Vision 2025, Continental has invested in more capacities in tire production at existing plants and in the construction of a new passenger and light truck tire production plant in Thailand. In Germany, the corporation started construction of its Taraxagum Lab Anklam to study the industrial scale production of dandelion rubber.