Continental to acquire Veyance Technologies of the US

Global automotive supplier Continental is to expand its global industrial business. The company has concluded an agreement with the US-based Carlyle Group for the buyout of Veyance Technologies Inc for 1.4 billion Euro (Rs 12,690 crore).

Veyance operates globally in the field of rubber and plastics technology and in 2013 recorded sales of approximately 1.5 billion Euro, 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.
"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. ContiTech itself will achieve some 60 percent of its sales outside the automotive OE sector in future," 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 US 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."
In 2013 ContiTech's and Veyance's merged pro forma sales will add-up to approximately 5.4 billion Euro, 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 other Asian countries. The product focus is on conveyor belts, hoses, power transmission belts and air springs.