German car parts supplier expects about €3.1 billion in cash proceeds and plans to return around €2.5 billion to shareholders after the deal closes, which it said could happen by the end of 2026.
Continental said it has agreed to sell its ContiTech plastics and rubber business to private equity firm Lone Star Funds for €4 billion, with additional performance-based payments of up to €250 million in subsequent years. The German car parts supplier said the transaction should generate about €3.1 billion in cash proceeds, subject to customary adjustments, and support a sharper focus on its core tires business. Continental also said it expects to distribute around €2.5 billion to shareholders after the deal is completed. The divestment follows pressure on the division, which in May cut 3,000 jobs, including 1,600 in Germany. Continental said the sale could be completed by the end of 2026.