Germany’s Continental has announced the sale of its subsidiary mycar Tyre & Auto, one of the largest tyre, automotive service and repair chains in Australia, to Tuhu, a leading Chinese automotive service platform. The transaction is based on an enterprise value of A$403 million.
The transaction marks another step in Continental’s strategic focus on its core business to develop and manufacture tyres. Under Tuhu’s ownership, mycar Tyre & Auto will have an owner with a strong focus on automotive services, providing a solid platform for the business to continue its growth and realise its potential. All of the more than 1,600 employees and around 280 stores of mycar Tyre & Auto are part of the transaction, which is subject to regulatory approvals.
Continental acquired mycar Tyre & Auto in 2018 to expand its distribution network in Australia and strengthen its global presence in the tyre market. Since the acquisition, Australia has developed into an established and important market for the company. At the same time, Continental has built its own strong and highly capable sales organisation in Australia over recent years, it added.
Under Continental’s ownership, mycar Tyre & Auto has steadily strengthened its market position in Australia over the past eight years through an expanded store network, a broader product portfolio and an enhanced market presence. The partnership between Continental and Tuhu creates opportunities for closer cooperation in the future. Following the completion of the transaction, mycar Tyre & Auto will remain a distribution partner of Continental in Australia and will continue to sell Continental tires there.
With around 280 stores across Australia, mycar Tyre & Auto offers a comprehensive range of automotive services, including scheduled maintenance, tyres, brakes, suspension, batteries and general mechanical repairs. The company has more than 1,600 employees in Australia, making mycar one of the largest employers in the automotive service and repair industry.