Continental AG is selling its ContiTech division, which specializes in plastics and rubber, to private equity firm Lone Star Funds for €4 billion (approximately $4.57 billion). The deal includes potential additional payments of up to €250 million. Continental anticipates net proceeds of about €3.1 billion from the sale and plans to distribute approximately €2.5 billion to its shareholders. This strategic move aims to streamline Continental's business portfolio.
German auto parts supplier Continental AG has reached an agreement to sell its ContiTech division, a business focused on plastics and rubber, to the private equity firm Lone Star Funds. The initial purchase price is set at €4 billion, with the possibility of additional components reaching up to €250 million. This transaction is expected to result in net proceeds for Continental of approximately €3.1 billion. Following the sale, Continental plans to distribute around €2.5 billion of these proceeds to its shareholders. The sale of ContiTech represents a significant step in Continental's strategy to refine its business operations and focus on core areas. Lone Star Funds, a global private equity firm, is acquiring a substantial business unit with a strong market presence in the plastics and rubber sector.