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Continental in deal with Lone Star Funds to offload ContiTech for $4.57 billion
- IBJ Bureau
- Jul 05, 2026
Continental has said that it has signed an agreement to sell its ContiTech plastics and rubber business to private equity firm Lone Star Funds for 4 billion euros ($4.57 billion).
Under the agreement, the German car parts supplier will also sell potential performance-based components of up to 250 million euros in subsequent years.
Continental has added that it expects cash proceeds of about 3.1 billion euros from the sale, subject to customary adjustments.
The company has said that the planned divestment will allow the company to focus on its core tyres business, going forward.
Continental expects to distribute around 2.5 billion euros to shareholders after the completion of the transaction.
Continental has added that it is assessing the impact of the deal on the company’s outlook for the current financial year.
It has said that the outlook for its tyres business remains unaffected.
Continental had previously announced plans to save 150 million euros annually from 2028 at ContiTech.
The division has been under pressure, and, in May, it had cut 3,000 jobs, including 1,600 in Germany, adding that the sale could be completed by the end of 2026.
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