Wesfarmers (ASX:WES) has today announced plans to sell its Kmart Tyre and Auto Services Business to German automotive manufacturing company, Continental AG for $350 million.
On successful completion of the deal the Australian conglomerate says it expects to post a pre-tax profit on sale of around $270 to $275 million.
The sale is subject to the approvals from the ACCC and the Foreign Investment Review Board.
Kmart Tyre and Auto Services Business is one of Australia’s largest tyre, automotive service and repair retailers, with 258 stores and over 1200 employees.
The company says the deal is in the best interests of Wesfarmers shareholders while giving the employees and customers of the auto business the opportunity to join a complementary business in Continental.
The sale is expected to complete in the first quarter of the 2019 financial year.
Shares in Wesfarmers (ASX:WES) closed 0.44 per cent higher to $50.38 on Friday