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Continental to acquire Veyance Technologies for approximately $1.9 billion
11 February 2014
Continental has concluded an agreement with The Carlyle Group relating to the purchase of Veyance Technologies Inc. for approximately €1.4 billion (US$1.9 billion). Veyance operates globally in the field of rubber and plastics technology and in 2013 recorded sales of approximately €1.5 billion (US$2 billion), around 90% of which were achieved outside the automotive industry. The acquisition is subject to the approval of the responsible anti-trust authorities.
Veyance’s business and geographic presence complements Continental’s existing global footprint, and the planned integration of Veyance into our ContiTech division will expand our position in rubber and plastics technologies on a worldwide basis. Furthermore this acquisition will enable Continental to come a step closer to its strategic goal of increasing further our proportion of sales to industrial customers and private end users. ContiTech itself will achieve some 60% of its sales outside the automotive OE sector in future. Veyance will make an immediate positive contribution to the corporation’s profitability once the transaction has been concluded. The acquisition can be financed from cash and available credit lines.—Dr. Elmar Degenhart, Chairman of Continental’s Executive Board in Hanover
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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