Hose & Hose Accessories Distribution
Continental Selling ContiTech’s OESL Unit to PE Firm Regent
OESL develops and manufactures hose lines and bearing elements for combustion-engine and electric vehicles.
Germany-based automotive solutions manufacturing conglomerate Continental AG is selling the Original Equipment Solutions (OESL) arm of ContiTech to U.S. private equity firm Regent.
Terms of the transaction were not disclosed, as both sides said they’ve agreed not to disclose the purchase price or further details.
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OESL employs over 16,000 people and reported approximately $2.2 billion (USD) in sales for fiscal 2024. The business develops and manufactures hose lines and bearing elements for both combustion-engine and electric vehicles. OESL provides solutions for emission reduction, thermal management, damping, transmission and precision sealing, with expertise in rubber, thermoplastics and metals, operating at around 40 locations in 15 countries.
Based in Beverly Hills CA, Regent is a global holding company with investments in the automotive, consumer, technology and media sectors. Its portfolio includes Bally, DIM Paris, Playtex, Lydech, Foundry and TechCrunch.
The announcement comes more than four months after Continental said it would spin off ContiTech as an independent entity. The company said the OESL sale aligns with ContiTech’s strategy to further concentrate on industrial customers. This move is part of Continental’s broader plan, outlined at its Capital Market Day in June, to establish four independent business units.
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“The decision to sell OESL is part of our broader strategy to intensify our focus on our industrial business. Going forward, ContiTech will be a standalone specialist for material solutions with a strong focus on industry,” Continental Executive Board Member and ContiTech Head of Group Sector Philip Nelles said in an Aug. 27 news release. “Given the dynamic market environment, concentrating on industrial business is the cornerstone of our strategy. Following the sale of OESL, ContiTech will generate around 80% of its sales with industrial customers. Our customer portfolio is highly diversified, both by industry and by region.”
