Continental AG is selling its ContiTech group sector to private equity firm Lone Star Funds for €4.0 billion. The deal includes an additional performance-based component worth up to €250 million. This transaction marks the final step in Continental's strategic realignment to focus exclusively on tire manufacturing.
ContiTech supplies rubber and thermoplastic products to industrial sectors such as mining and energy. Lone Star Funds intends to pursue growth through operational improvements and targeted investments. The acquisition is currently awaiting regulatory approval.
Continental plans to return approximately €2.5 billion of the sale proceeds to shareholders. These funds will support a special dividend or a combination of dividends and share buybacks. The divestment simplifies Continental's corporate structure and enables both entities to pursue independent growth strategies.