Lone Star agrees €4bn deal for Continental’s ContiTech unit
The transaction includes possible performance-linked payments of up to €250m in later years, according to PE Hub.
By Amanda Ross · Deals Correspondent
· 2 min read
Lone Star has agreed to acquire ContiTech, Continental’s rubber and thermoplastics business, in a transaction valued at €4 billion, according to PE Hub. The agreement would move a unit that generated about €4.4 billion in sales in 2025 into private equity ownership.
PE Hub reported that the transaction also includes performance-based components of as much as €250 million in subsequent years. Such structures can add deferred consideration to a headline purchase price if specified operating or financial targets are met after signing, linking part of the seller’s proceeds to the business’s later performance.
ContiTech’s product range includes conveyor and drive systems as well as fluid management products, according to PE Hub. Those categories place the business within industrial manufacturing supply chains, where components are used in movement, power transmission and the handling of liquids or gases.
Operational plan
PE Hub reported that Lone Star’s value creation plan for ContiTech will include operational improvements and targeted investments. The report did not cite further terms for the transaction, including the timetable for completion or any regulatory conditions.
For Continental, the agreement covers a business unit focused on rubber and thermoplastics. For Lone Star, the deal adds an industrial manufacturing platform with reported annual sales close to the agreed enterprise value before any performance-linked payments.
The contingent component means the final consideration could rise above €4 billion if the relevant performance criteria are achieved in later years, subject to the terms of the agreement. PE Hub reported the maximum size of that additional component as €250 million.
This story draws on original reporting from PE Hub.
