Continental finalizes Veyance acquisition
Continental announced that it finalized its acquisition of U.S. rubber company Veyance Technologies Inc.
The international automotive supplier, tire manufacturer and industrial company calls the acquisition the most significant in recent corporate history. The transaction is valued at 1.4 billion euros ($1.58 billion).
Veyance operates globally in the field of rubber and plastics technology and in 2013 recorded sales of some 1.5 billion euros, around 90 percent of which were achieved in industry business. It had 8,500 employees at 27 plants worldwide at the end of 2013. Headquartered in Fairlawn, Ohio, Veyance Technologies generates around half of its sales in the United States Other important markets include Latin America, Africa, China and other Asian countries. The product focus is on conveyor belts, hoses and power transmission belts. In 2013, ContiTech and Veyance together achieved sales totaling some 5.4 billion euros and employed around 38,000 staff worldwide.
“By integrating Veyance in our ContiTech division, we are expanding our global position in rubber and plastics technologies. In addition, this acquisition will bring Continental a significant step closer to its strategic goal of further increasing the proportion of industrial and end-customer business in its sales,” said Dr. Elmar Degenhart, chairman of Continental’s executive board in Hanover. “Continental has financed the acquisition entirely from liquid funds and available lines of credit. Veyance will make an immediate positive contribution to the corporation’s profitability.”
“Both the workforce and the customers stand to profit from the merger of the two companies,” said Heinz-Gerhard Wente, a member of Continental’s executive board and CEO of the ContiTech division. “Veyance will complement ContiTech in markets in which we have been underrepresented up till now. Another very important point is that the acquisition will enable us to significantly expand our industrial and end-customer business and, as a result, enable ContiTech to achieve a share of almost 60 percent of its sales outside the automotive original equipment sector.”
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