Germany’s Continental says it has entered exclusive negotiations with ASC Investment regarding the sale of its French retail operations ContiTrade France. The intended transaction includes more than 130 company-owned BestDrive outlets, two retreading facilities, as well as the administrative functions supporting the tyre and vehicle maintenance business and totalling approx. 1,200 employees.
All service outlets to be sold would remain part of Continental’s BestDrive France network under a franchise contract. Staff responsible for the franchise organization and the FleetPartner organisation will be integrated into the Continental marketing and sales organisation in France.
Both parties agreed not to disclose any further details. The intended transaction will be subject to consultation with the Comité Social et Économique (CSE) and approval by the supervisory board of Continental AG, followed by the signing of a sale and purchase agreement.
Through this transaction, BestDrive France aims to successfully complete the transformation of its business model, moving from a hybrid distribution structure to a fully franchised network in France. Once the transaction is completed, Continental will serve its individual and fleet customers in France through an extensive network of BestDrive service outlets operated by franchisees.
It adds that BestDrive remains fully committed to supporting its franchisees.
ASC intends to operate the service outlets as an independent and agile activity, fully dedicated to providing a wide range of high-quality services to its existing and new clients via an extended product offering. Together with the current management team, ASC is committed to leverage on the existing footprint of ContiTrade France and its employee’s skillsets.
Continental says it aims to optimise and expand its franchise network throughout France. Access to a competitive BestDrive Private Brand product range, a future-ready digital services portfolio as well as the nationwide FleetPartner network are key elements of BestDrive’s comprehensive franchise proposition. In total, BestDrive serves more than 200 outlets throughout France.
ASC is an investment firm based in Luxembourg and Munich, focusing on pan-European corporate spin-offs, carve-outs and succession situations with improvement potential. ASC is led by a group of experienced and proven investment and industry professionals with decades of experience, pursuing a strategy of unlocking operational improvement potential in acquired companies.
Since 2010 the ASC team has been investing in pan-European situations where an active and entrepreneurial-minded investor is needed.