Metcash sells its automotive division

Sarah Stowe

Grocery wholesaler Metcash is set to sell its automotive decision for $275 million.

Australian listed Burson Group, which owns the Burson Auto Parts brand, has agreed to buy Metcash’s automotive division: Autobarn, Autopro, ABS, and Midas Brands are part of the collective.

Ian Morrice Metcash CEO said that while Metcash’s automotive division has historically performed well, it’s in the best business interest of both parties to go ahead with the deal.

“Through discussions with Burson, it became clear that the parties could reach an agreement which represented both attractive value for shareholders and certainty of transaction completion,”

“While Metcash Automotive has performed well under our ownership, the sale makes sense for both Metcash and the automotive business,” Morrice said.

The sales of the Metcash automotive division is expected to be complete by July 2015.