Metcash, the operator of IGA supermarkets, has sold its automotive business to the auto parts group Burson for $275 million.
The company had been looking at a float of the automotive network which includes Autobarn, Autopro, ABS and Midas.
Metcash, which is being squeezed in the supermarket business by Aldi, Costco and major players Woolworths and Coles, said the cash from the sale would go into the core business.
CEO Ian Morrice said the sale made sense for both Metcash and the automotive business.
“We will redeploy capital to strengthen the group’s balance sheet and invest in our core businesses,” he said.
All employees will continue with the automotive business.
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