The sale of Continental’s ContiTech unit, which makes products such as conveyor belt systems and agricultural hoses, is expected to reach around 4 billion to 5 billion euros, people have said. (Markus Hibbeler/Bloomberg)
February 3, 2026 4:00 PM, EST
Bankers are working on debt packages of around 2.5 billion euros to back a potential acquisition of Continental AG’s industrial ContiTech unit, as a highly anticipated sales process kicks off.
Information memorandums on the sale, run by Deutsche Bank AG and Perella Weinberg Partners, went out last week, according to people familiar with the deal, who asked not to be identified because the matter is private. Potential buyers are expected to submit first-round bids in an auction next month, the people added.
The sale of the unit, which makes products such as conveyor belt systems and agricultural hoses, is expected to reach around 4 billion to 5 billion euros, the people said.
The launch of ContiTech marks the second multibillion euro industrial carveout in Germany this year as large corporations focus on core operations. Carmaker Volkswagen AG recently started the sale of a majority stake in its heavy diesel engine unit Everllence SE, which could fetch more than 5 billion euros, Bloomberg previously reported.
Several of the private equity suitors, such as EQT AB, CVC Capital Partners, EQT AB, KPS Capital Partners and Blackstone Inc., may look at both assets before deciding which one to pursue, the people said. Some suitors may prefer the ability to buy all of ContiTech compared to just a sizable stake in Everllence, some of the people said.
M&A activity is picking up again this year after a strong finish to 2025. Leveraged finance bankers, keen for a cut of some of the most lucrative fees in investment banking, have been vying for roles on the multibillion dollar financings underpinning these deals that are set to launch on both sides of the Atlantic in the next few months.
The bankers working on the ContiTech sale have started to put together debt packages of about 2.5 billion euros, equivalent to around 4.25 times the unit’s approximate 600 million euros in earnings before interest, taxes, depreciation and amortization, the people said.Â
The financing could come in the form of leveraged loans and high yield bonds, denominated in euros and dollars, they added.Â
Last month, Bloomberg reported Continental’s ContiTech unit was set to miss targets because of weak demand and other expenses, raising doubts about the price the division will fetch.
A spokesperson for Continental reiterated the company’s previous statement that the sales process kicked off in January after internal preparations were completed but declined to offer any commentary on the financing. A representative of Perella declined to comment. Deutsche Bank didn’t immediately respond to a request for comment.
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Offloading ContiTech is the final step in the German tire maker’s breakup plan that included listing its auto parts business Aumovio SE, which recently announced job cuts. The country’s automotive suppliers are facing mounting pressure as weak demand in Europe takes its toll. Rising competition from China and carmakers’ growing tendency to develop key technologies in-house have further eroded suppliers’ bargaining power.
