Continental sells ContiTech
Continental today announced the sale of its ContiTech group sector to an affiliate of Lone Star Funds for €4.0 billion.
The transaction also includes performance-based components of up to €250 million in subsequent years. The sale of its industrial business is the final step in Continental’s realignment. Once completed, the DAX-listed company will become a pure-play tire manufacturer for the first time in its history.
Continental said it expects a cash inflow from the transaction of around €3.1 billion. Around €2.5 billion is expected to be used for a special dividend or for a combination of a special dividend and share buybacks. Continental will also continue to strengthen its capital structure. Lone Star Funds will take over all of ContiTech’s business operations worldwide.
“With the sale of ContiTech, the supervisory board approved the final step in Continental’s realignment," said Sabrina Soussan, chair of Continental’s supervisory board. "We are convinced that both companies will be better positioned to develop as independent businesses than as part of the same group.This strategic focus will make them both even stronger,”
“The sale of ContiTech marks the beginning of a new era as a pure-play tire manufacturer,” said Continental CEO Christian Kötz, adding: “As announced, our shareholders will participate in the proceeds from the sale. We will also continue to improve our solid capital structure.”
“ContiTech is a well-positioned industrial company with outstanding technological capabilities and extensive expertise in materials, making it one of the leading providers in its industries," said Donald Quintin, chief executive officer of Lone Star Funds. "We are convinced of ContiTech’s significant potential. As a global investor with a track record in the industrials sector, we look forward to working closely with the management team and employees around the world to further develop the business – through operational improvements and targeted investments in attractive growth markets,”
ContiTech is one of the world’s leading industrial specialists, according to a Continental press release, and employs around 22,000 people worldwide. In fiscal 2025, ContiTech achieved sales of around €4.4 billion. The industrial sector accounts for around 80% of its sales. As a global provider of rubber and thermoplastic products and systems, ContiTech has extensive expertise in materials and technology. Its portfolio spans conveyor and drive systems, fluid management solutions, as well as damping and surface applications. The company serves a wide range of industrial end markets, including mining, energy, construction and in-frastructure, off-highway and mobility applications, as well as industrial manufacturing. In addition, ContiTech operates in the automotive, furniture, printing and packaging industries.
Following completion of the sale, Continental will become a focused tire manufacturer with a strong, globally recognized brand. Continental stated its tire business has shown stable development in recent years, despite volatile markets. The company says it benefits from highly efficient processes, a strong customer focus and a robust technology portfolio.
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