Last spring, Continental announced it would spin off its ContiTech industrial and automotive divisions, as it sought to be a pure-play tire manufacturer. As it hit the year mark from that announcement, the company announced the sale of its ContiTech group sector to an affiliate of Lone Star Funds for €4.0 billion. The transaction also includes performance-based components of up to €250 million in subsequent years.
The sale of its industrial business is the final step in Continental’s realignment. This follows the spin-off in September 2025 of the former Automotive group sector, which has since been listed on the Frankfurt Stock Exchange as Aumovio. In February 2026, the company also sold ContiTech’s former Original Equipment Solutions business area.
Once completed, the DAX-listed company will become a pure-play tire manufacturer for the first time in its history.
Lone Star Funds will take over all of ContiTech’s business operations worldwide. “ContiTech is a well-positioned industrial company with outstanding technological capabilities and extensive expertise in materials, making it one of the leading providers in its industries. We are convinced of ContiTech’s significant potential. As a global investor with a track record in the industrials sector, we look forward to working closely with the management team and employees around the world to further develop the business — through operational improvements and targeted investments in attractive growth markets,” said Donald Quintin, chief executive officer of Lone Star Funds.
ContiTech employs around 22,000 people worldwide. In fiscal 2025, ContiTech achieved sales of around €4.4 billion. The industrial sector accounts for around 80% of its sales. As a global provider of rubber and thermoplastic products and systems, ContiTech has extensive expertise in materials and technology. Its portfolio spans conveyor and drive systems, fluid management solutions (hydraulic hose), as well as damping and surface applications. With a clear focus on integrated solutions and services, ContiTech is evolving into a comprehensive industrial partner, particularly in the strategic growth areas of total conveyance and reliable flow. The company serves a wide range of industrial end markets, including mining, energy, construction and infrastructure, off-highway and mobility applications, as well as industrial manufacturing. In addition, ContiTech operates in the automotive, furniture, printing and packaging industries.
“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,” said Sabrina Soussan, chair of Continental’s Supervisory Board.
“The sale of ContiTech marks the beginning of a new era as a pure-play tire manufacturer,” said Continental CEO Christian Kötz, adding: “As announced, our shareholders will participate in the proceeds from the sale. We will also continue to improve our solid capital structure.”
Following completion of the sale, Continental will become a focused tire manufacturer with a strong, globally recognized brand. Continental’s tire business has shown stable development in recent years, despite volatile markets. The company benefits from highly efficient processes, a strong customer focus and a robust technology portfolio. Multiple awards in independent tire tests consistently demonstrate the high quality of its products. With approximately 55,000 employees and 19 tire plants, the company is well positioned both globally and locally.
Its strong business in passenger-car tires forms the foundation, accounting for around 77% of tire sales in 2025. The EMEA region continues to generate the largest share of sales at 53%. Globally, 76% of sales come from replacement tires. Continental is particularly well positioned in the premium segment for ultra-high-performance tires (18 inches and larger). Across all brands, these tires now account for around 55% of total passenger-car tire sales and for approximately 62% of tire sales of the Continental brand, with demand continuing to rise. In addition to growth in this area, Asia and North Americain particular are strategic growth markets.
Lone Star is an investment firm with its principal office in London, advising funds that invest globally in private equity, credit and real estate. The firm has been successfully navigating complex situations for over 30 years. The funds are experienced value investors that seek opportunities in situations that are influx or complicated by specific structural or financial factors, regardless of the prevailing market environment.
Continental
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Filed Under: Components, Hose & Tubing, News
