Sales of Pipe Goods by Continental
In a significant move, Continental, a leading German automotive manufacturer, has announced the sale of its Original Equipment Solutions (OESL) division to the privately-held US industrial holding company, Regent. The deal, which is subject to approval from the antitrust authorities, marks a key step in Continental's comprehensive restructuring.
The OESL division, which employs over 16,000 people worldwide, specialises in the development and manufacturing of hoses and storage elements for both internal combustion engine and electric vehicles. The sale, which was approved by the Conti Automotive Division's Supervisory Board, will see Regent focus on advancing sustainable and future-oriented mobility solutions together with OESL's management.
Meanwhile, Continental will concentrate on its industrial business, with the long-term aim of retaining only its tire business. Regent's founder, Michael Reinstein, has promised "secure prospects" for OESL employees worldwide.
The purchase price of the OESL division has been kept confidential. The deal also does not include the disclosure of this figure.
In a separate development, Aumovio, Continental's automotive parts division, is set to be spun off and listed on the stock exchange in September. Contitech, the division that houses OESL, has also planned closures for some of its plants and aims to focus more on its industrial business in the future.
This sale is not the only division being offloaded by Continental. The Automotive Sales Division is also soon to be sold, although the identity of the new owner has yet to be revealed. The move comes as Continental seeks to streamline its operations and focus on its core business areas.
As the automotive industry continues to evolve, with a growing focus on electric and sustainable mobility, this sale marks a significant shift for Continental. The company, which has been a stalwart of the industry for many years, will now look to the future with a renewed focus on its industrial business, while OESL, under new ownership, embarks on its own journey towards sustainable and forward-looking mobility solutions.
