Continental AG is selling its ContiTech industrial division to Lone Star Funds for €4.0 billion. The agreement includes performance-based components worth up to €250 million. This divestment marks the final step in the company's strategic realignment.
The transaction transforms Continental into a pure-play tire manufacturer for the first time in its history. ContiTech currently serves specialized industrial markets including mining, energy, and construction.
Continental expects a net cash inflow of approximately €3.1 billion after accounting for liabilities. The company intends to use roughly €2.5 billion for a special dividend or share buybacks. These capital returns remain subject to regulatory approval.