Goodyear to sell NZ retail businesses to locals for undisclosed sum
Beau Ideal will also take on Goodyear's local retail marketing and licensing programmes.
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Goodyear & Dunlop Tyres, the local unit of the biggest US tyre maker, plans to sell its New Zealand retail business for an undisclosed sum to locally-owned Beau Ideal.
If closed, the deal is expected to settle before the end of next month, and would see Goodyear's 52 Beaurepaires retail stores and 180 employees shift to Beau Ideal, owned by TyreLine Distributors' founder Grant Rushbrooke.
Beau Ideal would also take on Goodyear's local retail marketing and licensing programmes.
Goodyear's exit from New Zealand retail comes after it reviewed its strategy and decided to market and wholesale tyres, and improve its services to dealers and aviation customers. Last year Goodyear sold Beaurepaires' heavy commercial tyre service.
"We will continue to sell, distribute and offer through our wholesale distribution network the same outstanding consumer tyres for cars, 4WDs and light trucks, as well as commercial tyres for trucks and buses," New Zealand sales and market director Campbell Gough says in a statement.
"Goodyear & Dunlop Tyres will continue to be a major supporter of the New Zealand automotive industry."
Government figures this month showed growth in retail sales for motor vehicles has been outpacing gains across all industries. The sector reported a 1.9 percent increase in seasonally adjusted values in the March quarter on a 1.1 percent lift in volumes.
Goodyear says Beau Ideal has indicated it intends to keep operating and expanding Beaurepaires.
The New Zealand unit of Goodyear made a loss of $9.3 million in calendar 2011 on sales of some $154 million, according to its latest financial statements lodged with the Companies Office in July last year.
The move to focus on retail consumer tyre sales announced in June 2012 was to "enhance cost competitiveness and ensure long-term value and success", the financial statements said at the time.
(BusinessDesk)
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Goodyear to sell NZ retail businesses to locals for undisclosed sum
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