Private equity firms Apollo Global Management and Bain Capital are reportedly among the leading bidders for Continental AG's industrial division, ContiTech. Other firms that have advanced to the next bidding round include Advent and CVC Capital Partners, who have formed a joint bid, as well as Platinum Equity, KPS Capital Partners, and Clearlake Capital. The contested unit, ContiTech, manufactures various industrial components such as conveyor belts and air springs.
The potential acquisition of ContiTech is estimated to be valued between approximately $4.06 billion and slightly over $4.1 billion. This sale is a key part of Continental's larger strategic restructuring, which aims to transform the company into a pure-play tire manufacturer. This restructuring comes amid challenges in the automotive supply industry, including U.S. tariffs, reduced demand, and heightened competition from Chinese markets.
Bankers are currently preparing debt financing packages for the deal, with estimates suggesting around $2.75 billion in debt. This financing could be structured through leveraged loans and high-yield bonds, denominated in both euros and dollars. Despite progress in the bidding process, discussions are still ongoing, and neither the definitive size nor the precise timing of the deal has been finalized. Representatives for Apollo, Continental, CVC, Bain Capital, Clearlake, and Advent have declined to comment, while KPS and Platinum have not yet responded to inquiries.
