German automotive supplier Continental has agreed to sell its ContiTech industrial business to an affiliate of Lone Star Funds in a deal valued at €4bn ($4.56bn).
The disposal marks the final stage of Continental’s restructuring and, once the transaction closes, the group will operate solely as a tyre manufacturer.
ContiTech produces industrial parts such as conveyor belts and air springs and has a workforce of about 22,000 globally.
In the 2025 financial year, the division recorded sales of roughly €4.4bn, with industrial activities making up about 80% of that figure.
The agreement also contains performance-linked payments of up to €250m in the years ahead.
The deal remains subject to regulatory clearance.
Continental said that, after accounting for transferred net liabilities, including pension and lease obligations, it expects net cash proceeds of about €3.1bn from the sale.
Of that amount, around €2.5bn is expected to be allocated either to a special dividend or to a mix of a special dividend and share buybacks.
Under the agreement, Lone Star Funds will assume control of all ContiTech operations worldwide.
After the sale is completed, Continental will be a tyre-focused manufacturer with about 55,000 employees and 19 tyre plants. Passenger car tyres remain the core of the business, contributing around 77% of tyre sales in 2025.
The sale of ContiTech forms part of Continental’s broader shift towards a dedicated tyre business. It follows the September 2025 spin-off of its former Automotive group sector, which is now listed on the Frankfurt Stock Exchange as Aumovio.
In February 2026, Continental also disposed of ContiTech’s former Original Equipment Solutions business area.
Sabrina Soussan, chair of Continental’s Supervisory Board, said: “With the sale of ContiTech, the Supervisory Board approved the final step in Continental’s realignment. We are convinced that both companies will be better positioned to develop as independent businesses than as part of the same group. This strategic focus will make them both even stronger.”
