NTAW Holdings (ASX: NTD) has executed two separate divestment agreements, moving to sell Black Rubber’s Western Australian retail and retreading assets to Get A Grip Tyres Pty Ltd (GAGT), and to sell its 50% shareholding in South Africa’s Tyrelife Solutions to the business’s existing Managing Director. Both transactions were announced on 27 July 2026.
The dual sale advances CEO Warwick Hay’s “back to basics” strategy, refocusing the company on its core Australian and New Zealand tyre wholesale operations. Headline figures cover the WA assets at approximately $1.2M (plant and equipment, excluding inventory) plus estimated inventory of $2.5M, alongside the Tyrelife stake at $729,564.
Inside the Black Rubber WA divestment
Under the WA Sale Agreement, NTD will sell GAGT the assets required to operate the Black Rubber (BR) retail business from premises in Perth (Kewdale) and Port Hedland. Critically, the Sale Assets “do not include intangible assets associated with the name Black Rubber nor any goodwill.”
GAGT will assume the liabilities associated with the property leases in Perth and Port Hedland, as well as the entitlements of employees who are offered, and accept, an offer of continuous employment from GAGT.
The retreading plant and equipment originally supplied by Michelin (the “Retread Assets”) carries conditional treatment. Its inclusion depends on discussions between BR and Michelin, which holds a first right to buy back the assets. If the Retread Assets are not sold to GAGT, they will instead be sold to Michelin.
Completion of the agreement is subject to landlord consents for the lease assignments and to Michelin agreeing to release BR from its agreement relating to the Kewdale premises and the Retread Assets. Completion is expected to occur on or about 31 August 2026.
| Component | Detail | Value | Condition / Note |
|---|---|---|---|
| Sale Assets (ex-inventory) | Plant, equipment, vehicles, lease benefits | $1,200,000 | Minus Retread Asset value if applicable, less a proportion of transferring employee entitlements |
| Inventory | Sold at cost less age/quantity discounts | Estimated $2,500,000 | Subject to pre-completion stock take |
| Retread Assets | Michelin-supplied plant and equipment | Conditional | To GAGT unless Michelin exercises buy-back right |
| Expected completion | Settlement of WA Sale Agreement | On or about 31 August 2026 | Subject to landlord and Michelin consents |
The Sale Assets comprise:
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Inventory
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Plant and equipment
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Motor vehicles
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The benefit of the Kewdale and Port Hedland premises leases
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The benefit of certain customer contracts (only those relating exclusively to sales from those premises)
Proceeds from the sale of the Sale Assets will be used to fund working capital of existing BR operations. GAGT, established in 2003, is an Australian-owned, family-run business serving Western Australia’s mining, transport, construction and industrial sectors, and has warranted that it holds available cash or loan facilities to pay the sale price.
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Why NTD is stepping back: the strategic context
NTD acquired WA-based BR in November 2021 with a strategy to expand its commercial tyre retail and retreading businesses from Western Australia to Australia’s eastern seaboard, including converting Tyreright and former Goodyear outlets into BR stores.
In recent years, however, BR’s WA operations experienced declining revenues, attributed to a disjointed market alongside management and service issues. Combined with high fixed costs, these factors caused the operations to miss profit targets and incur substantial losses.
Those loss-making operations, together with the costs of BR’s expansion, resulted in a substantial impairment of the BR intangible assets in December 2024. The current divestment represents a corrective step within a broader discipline-focused reset rather than a fresh write-down.
NTD’s H1 FY2026 results showed the operational reset already producing measurable outcomes, with inventory reduced by $44.1 million, $13.7 million in debt repaid, and gross margin lifting to 30.3% as the wholesale core absorbed the cost discipline applied across the group.
Warwick Hay, CEO & Managing Director
“The sale of BR’s WA operations is an important step in our ‘back to basics’ strategy for NTD’s retail tyre businesses. This strategy involves restructuring the BR head office, having the eastern seaboard retail stores focus on regional vehicle fleets, and shifting responsibility for large national vehicle fleets to National Tyre & Wheel Pty Ltd, our wholesale business.”
Exiting South Africa: the Tyrelife Solutions sale
In a separate transaction, NTD has agreed to sell its 50% interest in Top Draw Tyres (Pty) Ltd, trading as Tyrelife Solutions (TLS). NTD originally acquired the stake in September 2017 in the South African tyre and wheel wholesale business.
TLS has suffered from supply chain difficulties in recent years and what the company described as “an ailing South African economy.” Substantial efforts over the past two years to introduce new brands and establish new distribution channels have not yet delivered material improvements. Intangible assets associated with TLS were written off in June 2020.
The key terms of the TLS transaction are as follows:
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TLS Sale Agreement dated 21 July 2026
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Buyer: Mr Georg Schramm, a TLS major shareholder and its Managing Director
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Total sale price: $729,564, payable in instalments over two years
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$498,336 due within 12 months; the remaining $231,228 due in the subsequent 12-month period
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Security for payment: charges over TLS shares, motor vehicles and certain other assets, plus a Cession Deed giving NTD certain rights to proceeds from the sale of certain real property owned by Mr Schramm
Warwick Hay, CEO & Managing Director
“Selling our interest in TLS is in the best interests of both companies as TLS no longer fits within NTD’s strategic objective of being Australia and New Zealand’s primary independent tyre and wheel wholesale business. The sale decreases NTD’s risk profile and enables us to focus on the continued reset and profitable growth of our core Australian and New Zealand businesses.”
Retreading explained: what investors should know
The process requires specialised plant and equipment, along with manufacturer licences such as Michelin’s Recamic brand intellectual property. That dependency explains why the Retread Assets carry conditional treatment in the WA sale. For investors, understanding this capital intensity and IP reliance helps clarify why NTD is consolidating around its wholesale core rather than capital-heavy manufacturing.
What the divestments mean for NTD’s focus
The two agreements point toward a clear strategic direction: consolidating around the National Tyre & Wheel wholesale business, refocusing eastern seaboard retail stores on regional vehicle fleets, shifting national fleet responsibility to the wholesale arm, and reducing the group’s risk profile by exiting South Africa.
Several near-term milestones offer reference points for investors:
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WA Sale completion on or about 31 August 2026
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Resolution of Michelin’s decision on the Retread Assets buy-back right
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TLS instalment payments ($498,336 within 12 months, with the $231,228 balance thereafter)
Together, the moves mark a tightening of NTD’s operational footprint around its Australian and New Zealand wholesale foundations, with completion of both transactions and the associated instalment schedule providing the key items to track in the months ahead.
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