Key facts
- Continental is selling its ContiTech plastics and rubber business to Lone Star Funds.
- The sale price is €4 billion ($4.57 billion), with potential additional performance-based payments.
- Continental anticipates net proceeds of approximately €3.1 billion.
- The company intends to distribute about €2.5 billion to shareholders.
- The transaction is expected to close by the end of 2026.
German auto parts maker Continental has agreed to sell its ContiTech division, which specializes in plastics and rubber products for industrial clients, to private equity firm Lone Star Funds for €4 billion ($4.57 billion). The deal also includes potential performance-based components of up to €250 million. Continental expects to receive approximately €3.1 billion in cash proceeds after customary adjustments and plans to distribute around €2.5 billion to shareholders following the transaction's completion. The ContiTech division has faced pressure, leading to 3,000 job cuts, including 1,600 in Germany. This divestment allows Continental to concentrate on its core tire business. The sale is anticipated to be finalized by the end of 2026.