Continental today 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. Lone Star is a leading investment firm with its principal office in London, UK, advising funds that invest globally in private equity, credit and real estate.
Once completed, the DAX-listed company will become a pure-play tyre manufacturer for the first time in its history. The transaction is subject to regulatory approval. After taking into account transferred net liabilities, particularly pension and leasing commitments, Continental expects a cash inflow from the transaction of around €3.1 billion. Around €2.5 billion is expected to be used for a special dividend or for a combination of a special dividend and share buybacks. Continental will also continue to strengthen its capital structure. Lone Star Funds will take over all of ContiTech’s business operations worldwide.
“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 tyre 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.”
“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, CEO of Lone Star Funds.
ContiTech is one of the world’s leading industrial specialists and 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, 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.
In mining, ContiTech is well known for having supplied and continuing to supply some of the world’s highest capacity and strongest mining conveyor belts, including the Phoenix Phoenocord ST10000, which can be manufactured in lengths weighing up to 60 metric tons, has a breaking strength of 10,000 N/mm and a width of 3,200 mm. Its special Sybercord cord design in combination with the highest manufacturing and quality standards and advanced splicing technology ContiTech says provides a unique, reliable and unmatched product.
In addition it is now made not only in Germany but also in Ponta Grossa, Brazil to be able to serve the Latin American mining market. The first installation was made in 2019/2020 at Codelco’s Chuquicamata copper mine in Chile – this 13 km TAKRAF conveyor with ABB gearless drives hauls 10,000 t/h of copper ore from 900 m underground to surface; plus this belt was recently successfully replaced. Other notable ContiTech high strength, high capacity belts include the ST7800 on downhill conveyors at AMSA’s Minera Los Pelambres copper mine in Chile and an ST8000 belt at Vale’s S11D iron ore operation in Brazil; which was made at ContiTech’s facility in Bayswater, Australia.
Following completion of the sale, Continental will become a focused tyre manufacturer with a strong, globally recognised brand. Continental’s tyre business it says 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 tyre tests consistently demonstrate the high quality of its products. With approximately 55,000 employees and 19 tyre plants, the company adds it is well positioned both globally and locally.
Its strong business in passenger-car tyres forms the foundation, accounting for around 77% of tyre sales in 2025. The EMEA region continues to generate the largest share of sales at 53%. Globally, 76% of sales come from replacement tyres. Continental is particularly well positioned in the premium segment for ultra-high-performance tyres (18 inches and larger). Across all brands, these tyres now account for around 55% of total passenger-car tyre sales and for approximately 62% of tyre sales of the Continental brand, with demand continuing to rise. In addition to growth in this area, Asia and North America in particular are strategic growth markets.
Continental’s realignment into a focused tyre manufacturer includes the sale of ContiTech. 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.