Apollo and Bain Advance in ContiTech Auction
Apollo Global Management and Bain Capital are among a group of buyout firms progressing in the auction for Continental AG’s industrial division ContiTech, according to Private Equity Wire. The business, which manufactures industrial components including conveyor belts and air springs, could reportedly be valued at between approximately €3.5bn and just over €4bn, with financing packages of around €2.5bn being explored for a potential transaction.
Bidders Involved in the Process
Other bidders include a consortium of Advent International and CVC Capital Partners, alongside Platinum Equity, KPS Capital Partners, and Clearlake Capital, all of which have advanced to the next stage of the auction. The people familiar with the matter cautioned that discussions remain ongoing, with no final decisions taken on valuation or timing, as reported by Private Equity Wire.
Valuation and Financing Details
Financing packages of around €2.5bn are being explored to support a potential transaction for ContiTech, which is part of Continental’s efforts to reshape its portfolio. The valuation range of approximately €3.5bn to just over €4bn reflects the ongoing auction process for the division.
Strategic Context of the Sale
A sale of ContiTech would mark the final step in Continental’s broader break-up strategy, as the German group addresses ongoing pressure on Europe’s automotive supply chain. It is widely known that such pressures have prompted companies in the sector to divest non-core assets, according to Private Equity Wire.
