Germany's Continental sells ContiTech unit to Lone Star Funds for €4 billion
German auto supplier Continental has agreed to sell its ContiTech industrial rubber and plastics unit to US private equity firm Lone Star Funds for about €4 billion. The deal is part of the company's strategy to focus on its core businesses. The sale accelerates Continental's efforts to simplify its portfolio.
German auto supplier Continental has announced it has reached an agreement to sell its ContiTech unit, which makes industrial rubber and plastic products, to US-based private equity firm Lone Star Funds. The transaction is valued at about €4 billion.
The sale is seen as part of Continental's strategy in recent years to simplify its portfolio and concentrate on its core businesses. The company has been focusing on automotive technology and its tyre operations while divesting peripheral divisions.
Private equity firms are maintaining their appetite for industrial assets. Lone Star Funds' acquisition of ContiTech stands out as one of the larger industrial restructuring deals in Europe. Completion of the agreement will be subject to regulatory approvals.
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