CAR Group (ASX:CAR) will exit its Australian Tyres business unit consisting of the wholesale division, reconnect, and e-commerce platform tyresales.com.au, following a strategic review, according to a Tuesday Australian bourse filing.
The company reached an agreement to sell certain assets of tyreconnect to an unnamed third party, with the sale expected to be completed at the end of February. The financial terms of the sale were not disclosed.
It said the decision followed continued difficulty in achieving sustainable profitability in a "highly competitive" market, per the filing.
The firm expects to incur costs associated with the exit, including redundancy costs and asset write-downs, on a reported statutory basis. These costs will not be material to the firm, it added.
The firm's shares rose nearly 3% in early trade Tuesday.
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