Continental AG is set to sell its Contitech division to private equity firm Lonestar Capital for approximately €4 billion, according to reports from Handelsblatt.
Insiders familiar with the matter stated that both parties have agreed on the purchase price, signaling a definitive end to speculation regarding the future of the conveyor-belt and hose business.
The transaction represents a significant strategic shift for Continental, which has been under pressure to streamline its portfolio and improve profitability amid a challenging automotive sector.
By offloading Contitech, Continental can focus resources on its core automotive technologies and mobility services, while raising capital to strengthen its balance sheet.
For Lonestar, the acquisition provides a foothold in the industrial infrastructure market, a sector that has seen increased consolidation activity.
The deal aligns with broader trends where private equity firms are targeting stable, cash-generative industrial assets.