Continental agrees $4.6 billion sale of ContiTech unit

Anabelle Colaco
06 Jul 2026, 11:00 GMT+10

Continental has agreed to sell its ContiTech plastics and rubber business to private equity firm Lone Star Funds in a deal worth up to €4.25 billion ($4.57 billion)
The agreement, announced on July 4, values ContiTech at €4 billion, with additional performance-based payments of up to €250 million in the coming years
The company said the divestment will allow it to concentrate on its tires business, adding that the outlook for the division remains unchanged

HANOVER, Germany: Continental has agreed to sell its ContiTech plastics and rubber business to private equity firm Lone Star Funds in a deal worth up to €4.25 billion ($4.57 billion), as the German automotive supplier sharpens its focus on its core tires business.

The agreement, announced on July 4, values ContiTech at €4 billion, with additional performance-based payments of up to €250 million in the coming years.

Continental said it expects cash proceeds of about €3.1 billion from the transaction, subject to customary adjustments.

The company said the divestment will allow it to concentrate on its tires business, adding that the outlook for the division remains unchanged.

Continental also plans to distribute around €2.5 billion to shareholders once the transaction is completed.

The company said it is assessing how the sale will affect its financial outlook for the current fiscal year.

ContiTech, which manufactures rubber and plastic products for industrial customers, has been under pressure in recent years. In May, the division announced plans to cut 3,000 jobs, including 1,600 in Germany. At the time, Continental said it expected the sale of the business to be completed by the end of 2026.

The company had also previously announced plans to generate annual savings of €150 million at ContiTech from 2028.

Reuters reported on July 3, citing sources, that Continental and Lone Star Funds were nearing an agreement for the sale of the business.