Conti Sells ContiTech to Lone Star Funds in €4bn Deal

Continental AG has agreed to sell its ContiTech industrial and materials arm to investment firm Lone Star Funds in a deal worth €4.0 billion. The sale includes performance-based payments of up to €250 million and is expected to generate cash proceeds of around €3.1 billion. Of the cash proceeds, €2.5 billion will be returned to shareholders through a special dividend or a combination of a special dividend and share buybacks. The sale marks the final step in Continental’s strategic restructuring, following the spin-off of its automotive business as Aumovio last year and the sale of ContiTech’s Original Equipment Solutions business earlier this year. With the sale, Continental will become a ‘pure-play’ tire manufacturer, prioritizing growth in North America and Asia. ContiTech employs around 22,000 people worldwide and generated sales of €4.4 billion in 2025, with around 80% of revenue coming from industrial markets. The business supplies rubber and thermoplastic products for sectors including mining, energy, construction, infrastructure, industrial manufacturing, and mobility. Following completion of the transaction, Continental will focus exclusively on its global tire business, which employs around 55,000 people across 19 production plants. Passenger car tires accounted for 77% of tire sales in 2025, with EMEA generating the largest share of sales at 53%. Replacement tires represented 76% of total PCR sales. The company will continue to prioritize ‘premium ultra-high-performance tires’ (18 inches and larger), which accounted for 55% of total PCR sales in 2025. North America and Asia have been identified as ‘strategic growth markets’.