Continental announced on Saturday that it had reached a deal with private equity firm Lone Star Funds to sell its ContiTech plastics and rubber division for €4 billion ($4.57 billion), plus possible performance-based components of up to €250 million in later years.
The German supplier of auto parts stated that, subject to customary adjustments, it anticipates receiving approximately €3.1 billion in cash from the deal.
Continental noted that the proposed disposal will enable the company to continue concentrating on its primary tire business.
Continental stated that following the completion of the deal, it anticipates giving shareholders about €2.5 billion.
According to the company, Continental is evaluating how the purchase may affect its projections for the current fiscal year.
The company also stated that there is no change in the forecast for its tire business.
Continental had earlier declared that it would start saving €150 million a year at ContiTech in 2028.
Under pressure, the division eliminated 3,000 jobs in May, including 1,600 in Germany, and stated that the sale might be concluded by the end of 2026.
