Lone Star Funds has agreed to acquire ContiTech, Continental’s industrial materials arm, for €4bn. The transaction will leave Continental a pure‑play tyre manufacturer for the first time in its history, completing a long‑running restructuring that began with the 2025 spin‑off of its former automotive unit, now listed as Aumovio in Frankfurt.

Continental will receive a cash inflow of roughly €3.1bn after net liabilities are transferred, with about €2.5bn earmarked for a special dividend or a mix of dividends and share buybacks. ContiTech employs around 22,000 people and generated sales of about €4.4bn in fiscal 2025.

Chief executive Christian Kötz said the sale marks “the beginning of a new era as a pure‑play tire manufacturer.” Donald Quintin, CEO of Lone Star, highlighted the firm’s industrials expertise and plans to target growth markets, applying its typical bolt‑on strategy to ContiTech’s diversified portfolio.

The deal is subject to regulatory approval. For investors, the divestiture removes a non‑core asset that previously diluted Continental’s valuation, while Lone Star’s focused industrial play may unlock operational synergies and position ContiTech for accelerated growth in mining, energy and infrastructure sectors.