Australia’s leading independent law firm, Corrs Chambers Westgarth, has advised Wesfarmers on the sale of its Kmart Tyre and Auto Service business to Continental AG for A$350 million.
The Kmart Tyre and Auto Service (KTAS) business is one of Australia’s largest tyre, automotive and repair retailers, with 258 stores across Australia and over 1,200 employees. Wesfarmers had acquired the KTAS business as part of its acquisition of the Coles Group in 2007.
The buyer, Continental AG, is based in Germany and currently employs more than 243,000 people in 60 countries. The sale remains subject to certain consents and approvals from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.
Corrs acted for Wesfarmers on the KTAS sale process as well as the transitional services arrangements to be put in place to assist with the separation of the KTAS business from Wesfarmers’ other retail businesses.
“We are delighted to be able to support Wesfarmers on a strategic transaction such as this, which crystallises value for Wesfarmers’ shareholders,” Corrs Partner Sandy Mak said.
“It was a great team effort from practice groups across the country, and we look forward to continuing to work closely with Wesfarmers in the future,” said Corrs Partner Russell Philip.
The Corrs team was led by Corporate Partners Sandy Mak (Sydney) and Russell Philip (Perth), with support from Special Counsel Nicole Graham (Sydney) and Senior Associate Nick Herbert (Perth). Melbourne intellectual property partner Phil Catania led the negotiation of the transitional services arrangements, with support from Senior Associate Suman Reddy (Intellectual Property).
Given the diverse nature of the business, the team drew on the expertise and experience of a number of Corrs practice groups across Perth, Sydney and Melbourne offices, including: Partners Mark McCowan (Competition), Alan Churley (Property), Jack de Flamingh (Employment), Louise Camenzuli (Environment & Planning) and Kirsty Sutherland (Litigation).
The transaction is expected to complete in the first quarter of the 2019 financial year.
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