Conti talks with Carlyle Group break down, seeks new buyer for ContiTech

HANOVER, Germany (Sept. 5)—Continental A.G. has reopened its search for a buyer for its ContiTech non-tire rubber components unit after Conti and Carlyle Group, the Washington-based private equity investment group identified two months ago as the preferred buyer, were unable to agree on a purchase price. Continental has begun talks with other interested parties, including Industri Kapital A.B., a Swedish investment group with holdings in manufacturing, service, retailing/wholesaling, building materials and other industries. Under the proposed deal with Carlyle, ContiTech would have been sold for an undisclosed sum as a complete unit, including its vehicle anti-vibration systems and airsprings operations, which Conti originally intended to retain, the company said earlier. Carlyle Group could not be reached for comment. ContiTech comprises eight separate business units; together they reported $1.65 billion in sales and $128 million in pretax earnings last year.