Continental AG to acquire Veyance Technologies
German automotive supplier Continental AG announced plans to acquire Veyance Technologies from the private equity firm Carlyle Group.
The deal was valued at approximately 1.4 billion Euro. Veyance manufactures conveyor belts, hoses, power transmission belts and air springs. It had sales of approximately 1.5 billion Euro in 2013. Veyance has 27 plants around the world and a workforce of about 9,000 employees. 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," said Dr. Elmar Degenhart, chairman of Continental’s executive board in Hanover.
“Veyance Technologies will complement our ContiTech division in key markets where our presence is limited, particularly in the U.S. and South America. Plants in Mexico, Canada, China, Australia and also South Africa will provide additional opportunities,” explained Heinz-Gerhard Wente, member of the executive board of Continental AG and CEO of the ContiTech division. “Veyance and ContiTech complement each other geographically, and 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.”
Veyance Technologies achieves about half of its sales in the U.S. Other important markets are Latin America, Africa, China and further Asian countries.
“ContiTech and Veyance are a great fit for each other,” said John S. Hamilton, chief executive officer of Veyance Technologies Inc. “In addition to the complementary geographic and product mix, we bring an organization and culture which delivers on our commitments to customers, employees, and our communities. We look forward to becoming valuable members of the ContiTech team to continue building upon our shared culture of innovation and providing value to customers.”
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