Continental AG has sold its industrial ContiTech unit to Lone Star Funds for an enterprise valuation of €4 billion, which is about $4.6 billion. This transaction is a significant step for Continental, as it completes the German manufacturer's strategic shift to concentrate solely on its tire business. The deal includes an additional performance-based element of up to €250 million.
Continental expects to generate cash proceeds of approximately €3.1 billion upon the deal's closing, which is anticipated by the end of the year. From these proceeds, around €2.5 billion is expected to be used for a special dividend or a combination of a special dividend and share buybacks for shareholders. Bankers had previously been working on debt packages of around €2.5 billion (approximately $2.9 billion) to back a potential acquisition of the unit, with information memorandums for the sale having been distributed in early February 2026.
This sale is the final step in Continental's realignment strategy, which also included the spin-off of its former Automotive group sector (now Aumovio) in September 2025 and the sale of ContiTech's former Original Equipment Solutions business area in February 2026. Following the completion of this transaction, Continental will operate as a focused tire manufacturer. Lone Star Funds, a leading investment firm with a history in the industrials sector, will take over all of ContiTech's global business operations, which employs around 22,000 people worldwide and achieved sales of approximately €4.4 billion in fiscal year 2025.
