Continentalwill expand its global industrial business via a significant acquisition: Theinternational automotive supplier, tire manufacturer and industrial partnerheadquartered in Hanover, Germany, announced today that it has concluded anagreement with The Carlyle Group, Washington D.C., USA, relating to thepurchase of Veyance Technologies Inc, Fairlawn, Ohio, USA, for approximately1.4 billion Euro. Veyance operates globally in the field of rubber and plasticstechnology and in 2013 recorded sales of approximately 1.5 billion Euro, around90 percent of which were achieved outside the automotive industry. Veyance has27 plants around the world and a workforce of about 9,000 employees at the endof 2013. The acquisition is subject to the approval of the responsibleanti-trust authorities.
“Veyance’s business and geographic presence complements Continental’sexisting global footprint, and the planned integration of Veyance into ourContiTech division will expand our position in rubber and plastics technologieson a worldwide basis. Furthermore this acquisition will enable Continental tocome a step closer to its strategic goal of increasing further our proportionof sales to industrial customers and private end users. ContiTech itself willachieve some 60 percent of its sales outside the automotive OE sector infuture,” said Dr.Elmar Degenhart, Chairman of Continental’s Executive Board inHanover. “Veyance will make an immediate positive contribution to thecorporation’s profitability once the transaction has been concluded. Theacquisition can be financed from cash and available credit lines.”
“Veyance Technologies will complement our ContiTech division in keymarkets where our presence is limited, particularly in the US and SouthAmerica. Plants in Mexico, Canada, China, Australia and also South Africa willprovide additional opportunities,” explainedHeinz-Gerhard Wente, Member of the Executive Board of Continental AGand CEO of the ContiTech division. “Veyance and ContiTech complement eachother geographically, and ContiTech’s Conveyor Belt Group and Fluid Technologybusiness units in particular will benefit from an enhanced global presence. ThePower Transmission Group and Air Spring Systems also will achieve positiveresults from the merger.”
“We are proud of what the Veyance management team has accomplished andbelieve the combination of Veyance and Continental will even more effectivelymeet customers’ needs globally,” addedMartin Sumner, Managing Director of The Carlyle Group. In 2013ContiTech’s and Veyance’s merged pro forma sales will add-up to approximately5.4 billion Euro, and they employ about 39,000 people worldwide. VeyanceTechnologies achieves about half of its sales in the US. Other importantmarkets are Latin America, Africa, China and further Asian countries. Theproduct focus is on conveyor belts, hoses, power transmission belts and airsprings.
“ContiTech and Veyance are a great fit for each other,” says John S. Hamilton, Chief ExecutiveOfficer of Veyance Technologies Inc. “In addition to thecomplementary geographic and product mix, we bring an organization and culturewhich delivers on our commitments to customers, employees, and our communities.We look forward to becoming valuable members of the ContiTech team to continuebuilding upon our shared culture of innovation and providing value tocustomers.”