Continental says it’s exiting the industrial material solutions business to become a “pure-play” tire manufacturer.

The company recently sold its ContiTech group to an affiliate of investment firm Lone Star Funds for €4.0 billion ($4.57 billion), with additional performance-based components of up to €250 million ($286 million) possible in subsequent years, Continental reported.

ContiTech is a leading industrial specialist in “material solutions” that employs approximately 22,000 people and reported sales of around €4.4 billion ($5 billion) in fiscal-year 2025. Of note to the bulk transport and industrial sectors, ContiTech’s portfolio includes fluid management solutions, conveyor systems, and rubber and thermoplastic products. The company serves a wide range of end markets, including energy, mining, and construction.

“The sale of ContiTech not only marks the final step in our strategic realignment, but also the beginning of a new era as a pure-play tire manufacturer,” Continental CEO Christian Kötz said in a news release. This transaction follows other major structural changes, including the September 2025 spin-off of its automotive group (now Aumovio) and the February sale of ContiTech’s Original Equipment Solutions business.

Lone Star Funds will take over all worldwide operations of ContiTech, the companies stated. Donald Quintin, CEO of Lone Star Funds, expressed confidence in the company’s potential, noting plans to further develop the business through operational improvements and targeted investments.

Continental expects the transaction to result in a cash inflow of approximately €3.1 billion ($3.5 billion). The company plans to use around €2.5 billion ($2.86 billion) of these proceeds for a special dividend or a combination of a special dividend and share buybacks.

The deal remains subject to regulatory approval.

“ContiTech is a well-positioned industrial company with outstanding technological capabilities and extensive expertise in materials, making it one of the leading providers in its industries,” Quintin concluded. “We are convinced of ContiTech’s significant potential. As a global investor with a track record in the industrials sector, we look forward to working closely with the management team and employees around the world to further develop the business through operational improvements and targeted investments in attractive growth markets.”