Continental Announces Sale of ContiTech Original Equipment Solutions Business

On August 27, the American private equity firm Regent stated in a declaration that Continental AG announced the sale of its ContiTech Original Equipment Solutions (OESL) business to Regent. The transaction is subject to antitrust approval. Both parties have agreed not to disclose the acquisition price or further details.

As of now, OESL has over 16,000 employees.Fiscal Year 2024Its sales amount to approximately 1.9 billion euros. OESL's main business scope includes "the development and production services of hose and pipeline systems and bearing components for fuel vehicles and electric vehicles."

Image Source: Continental AG

Philip Nelles, Member of the Executive Board of Continental AG and Head of ContiTech, pointed out: “The sale of OESL is part of our overall strategy to ‘strengthen our focus on the industrial business.’ In the future, ContiTech will become an independent specialist company focused on material solutions, with its core business direction highly concentrated in the industrial sector. In today’s dynamic and changing market environment, focusing on the industrial business is the cornerstone of our strategy. After the sale of OESL, approximately 80% of ContiTech’s sales will come from industrial customers. Whether in terms of industry or region, our customer portfolio is characterized by a high degree of diversity.”

Michael A. Reinstein, Founder and Chairman of Regent, stated: "With an attractive product portfolio and deep expertise in the automotive industry, OESL has a solid foundation for development and promising growth prospects. As a long-term strategy-oriented investor, we will work closely with the management team to drive the business towards sustainable, future-oriented mobility solutions and fully explore OESL's potential for value enhancement. This will create meaningful development opportunities for our employees worldwide." Regent is a global holding company with investments spanning the automotive, consumer, technology, and media industries, headquartered in Beverly Hills, California, USA.

This sale also marks Continental's continued advancement in the strategic direction outlined at its Capital Markets Day in June, which is to establish four strong and independent leading companies.

Continental Group was founded in 1871 and is dedicated to developing advanced technologies and services to achieve sustainable interconnected mobility of people and their goods. Continental Group provides safe, efficient, intelligent, and economical solutions for vehicles, machinery, traffic, and transportation sectors. In 2024, Continental Group's sales reached 39.7 billion euros, and it currently has approximately 190,000 employees in 55 countries and regions worldwide.