Continental buys Veyance Technologies
ERJ staff report (TP)
Hanover, Germany / Fairlawn, Ohio − Continental said it concluded an agreement with The Carlyle Group (Washington DC), relating to the purchase of Veyance Technologies Inc (Fairlawn, Ohio) for approximately €1.4bn.
Veyance operates globally in the field of rubber and plastics technology and in 2013 recorded sales of approximately €1.5bn, around 90 percent of which were achieved outside the automotive industry. Veyance has 27 plants around the world and a workforce of about 9,000 employees at the end of 2013. The acquisition is subject to the approval of the responsible anti-trust authorities.
“Veyance Technologies will complement our ContiTech division in key markets where our presence is limited, particularly in the US and South America. Plants in Mexico, Canada, China, Australia and also South Africa will provide additional opportunities,” said Heinz-Gerhard Wente, Member of the Executive Board of Continental AG and CEO of the ContiTech division.
“ContiTech’s Conveyor Belt Group and Fluid Technology business units in particular will benefit from an enhanced global presence. The Power Transmission Group and Air Spring Systems also will achieve positive results from the merger,” he added.
In 2013 ContiTech’s and Veyance’s merged pro forma sales will add-up to approximately €5.4bn, and they employ about 39,000 people worldwide. Veyance Technologies achieves about half of its sales in the US. Other important markets are Latin America, Africa, China and further Asian countries. The product focus is on conveyor belts, hoses, power transmission belts and air springs.
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Press release from Continental