Continental AG has agreed to sell its ContiTech division to US private equity firm Lone Star Funds for approximately €4 billion.
The transaction, which received approval from Continental's management board, involves the rubber and plastics unit that employs around 20,000 people.
The deal represents a significant contraction of Continental's traditional industrial footprint as the company pivots toward higher-margin automotive technologies.
The sale to Lone Star, a major player in global private equity, underscores the growing appetite for leveraged buyouts in the European industrial sector.
By offloading the capital-intensive ContiTech business, Continental aims to streamline its operations and improve its balance sheet.
The divestiture allows the automaker supplier to redirect resources toward its core automotive and mobility solutions, areas where it expects stronger long-term growth and profitability.