The $350m deal crystallises value for shareholders, the firm says
Corrs Chambers Westgarth advised Wesfarmers on its sale of Kmart Tyre and Auto Service (KTAS) to a German auto giant.
KTAS is being sold to Continental AG for $350m, in a move that crystallises value for Wesfarmers shareholders, said Corrs partner Sandy Mak. The Sydney-based partner jointly led the Corrs team on the deal with Perth-based partner Russell Philip.
“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,” Philip said.
Mak and Philip were supported by special counsel Nicole Graham in Sydney) and senior associate Nick Herbert in Perth.
Melbourne intellectual property partner Phil Catania, assisted by senior associate Suman Reddy, led the negotiation of the transitional services arrangements.
Corrs said that the deal team drew on the experience of a number of practice groups in Perth, Sydney, and Melbourne due to the diverse nature of the business. Partners Mark McCowan, Alan Churley, Jack de Flamingh, Louise Camenzuli, and Kirsty Sutherland also provided expert advice.
With a network of 258 stores and more than 1,200 employees, KTAS is one of the country’s largest tyre, automotive repair, and automotive retail businesses. It was acquired by Wesfarmers in 2007 as part of the Coles Group deal.
Based in Hanover, Germany, Continental AG has operations in 60 countries and employs more than 243,000.
The acquisition, which is subject to regulatory approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board, is expected to close in the first quarter of next year.
Sandy Mak and Russell Philip
