ContiTech acquires Veyance Technologies

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. 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 percent of its sales outside the automotive OE sector in future," said Dr. Elmar Degenhart, Chairman of Continental's Executive Board in Hanover. "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." "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."