July 6, 2026 15:07

One year after deciding to sell its ContiTech division, Germany’s Continental has accepted an offer from private equity firm Lone Star Funds.
In recent months, Lone Star has also acquired RadiciGroup’s High Performance Polymers and Specialty Chemicals divisions, as well as DOMO Chemicals’ Engineered Materials activities, in the engineering plastics sector.

Lone Star Funds has offered €4 billion for Continental’s division, which specialises in technical components made from rubber and thermoplastics for industrial and automotive markets.
The deal also includes a performance-based component of up to €250 million, linked to the division’s results in the coming years. The transaction remains subject to regulatory approvals and customary closing conditions.

After taking into account transferred liabilities, particularly pension and leasing commitments, Continental expects to receive cash proceeds of around €3.1 billion. Of this amount, €2.5 billion will be used for a special dividend or for a combination of a special dividend and share buybacks.

“The sale of ContiTech not only marks the final step in our strategic realignment, but also the beginning of a new era as a pure-play tire manufacturer,” said Christian Kötz, CEO of Continental, pictured.

Active in the production of rubber components and engineering plastics, ContiTech employs almost 22,000 people and generated sales of around €4.4 billion in fiscal 2025, with nearly 80% coming from the industrial sector. Its application areas range from automotive to mining, energy and construction, as well as furniture, printing and packaging.

At the end of last year, Continental announced a restructuring plan aimed at reducing the division’s costs by €150 million ahead of the divestment. The plan involves cutting 3,000 jobs worldwide, including around 1,600 in Germany.

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