German auto supply giant Continental plans to sell a hose line and bearing subsidiary to a Southern California private equity firm, company officials announced Wednesday.
Original Equipment Solutions, a developer and manufacturer of hose lines and bearing elements for both internal combustion engine and electric vehicles, will be acquired by Regent pending approval by antitrust regulators. The business, part of Continental’s ContiTech division, accounted for some $1.27 billion in 2024 sales and has a workforce of more than 16,000.
The deal, Continental officials said, is part of a broader strategy to focus on ContiTech’s industrial business. The ContiTech unit is also poised to be spun out of Continental in the coming months.
“Going forward, ContiTech will be a standalone specialist for material solutions with a strong focus on industry,” Philip Nelles, who heads the ContiTech division, said in the announcement.
Terms of the transaction were not disclosed.
Regent Chairman and founder Michael Reinstein said that OESL offers “a strong foundation and excellent growth prospects.” The investment firm, based in Beverly Hills, owns a range of industrial, consumer product and media companies.
“As a long-term, strategically oriented owner, we will work closely with management to drive the transformation to sustainable, future-oriented mobility solutions and harness OESL’s potential to enhance value,” Reinstein said.
