10.02.2014
Continental AG DE0005439004
DGAP-News: Continental Intends to Strengthen Industrial Business via Significant Acquisition
DGAP-News: Continental AG / Key word(s): Acquisition/Miscellaneous
Continental Intends to Strengthen Industrial Business via Significant
Acquisition
10.02.2014 / 16:18
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- Agreement reached with The Carlyle Group on the purchase of Veyance
Technologies
- Opening up of new markets / Improvement of global reach
- ContiTech sales around 5.4 billion Euros in future
Hanover/Fairlawn, USA, 10 February 2014. Continental will expand its global
industrial business via a significant acquisition: The international
automotive supplier, tire manufacturer and industrial partner headquartered
in Hanover, Germany, announced today that it has concluded an agreement
with The Carlyle Group, Washington D.C., USA, relating to the purchase of
Veyance Technologies Inc, Fairlawn, Ohio, USA, for approximately 1.4
billion Euros. Veyance operates globally in the field of rubber and
plastics technology and in 2013 recorded sales of approximately 1.5 billion
Euros, 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.'
'We are proud of what the Veyance management team has accomplished and
believe the combination of Veyance and Continental will even more
effectively meet customers' needs globally,' added Martin Sumner, Managing
Director of The Carlyle Group. In 2013 ContiTech's and Veyance's merged pro
forma sales will add-up to approximately 5.4 billion Euros, 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 further Asian countries. The product focus is on conveyor belts,
hoses, power transmission belts and air springs.
'ContiTech and Veyance are a great fit for each other,' says 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.'
With provisional sales of around EUR33.3 billion in 2013, Continental is
among the leading automotive suppliers worldwide. As a supplier of brake
systems, systems and components for powertrains and chassis,
instrumentation, infotainment solutions, vehicle electronics, tires and
technical elastomers, Continental contributes to enhanced driving safety
and global climate protection. Continental is also an expert partner in
networked automobile communication. Continental currently has more than
177,000 employees in 46 countries.
The ContiTech division numbers among the leading suppliers of a host of
technical rubber products and is a specialist for plastics technology. The
division develops and produces functional parts, components and systems for
the automotive industry and other important industries. ContiTech currently
has a workforce of approximately 29,700 employees. In 2013 it recorded
provisional sales of about EUR3.9 billion.
Contact for Journalists
Hannes Boekhoff
Vice President Media Relations
Continental AG
Vahrenwalder Str. 9
30165 Hanover, Germany
Tel.: +49 511 938-1278
Fax: +49 511 938-1016
E-mail: [email protected]
Kathryn Blackwell
Vice President, Communications and Marketing, North America
Continental
One Continental Drive
Auburn Hills, MI 48326, USA
Phone: +1 248-393-6593
Mobile: +1 248-462-9114
E-mail: [email protected]
Mario Töpfer
Head of Technical Media Relations
ContiTech AG
Vahrenwalder Str. 9
30165 Hanover, Germany
Tel.: +49 511 938-1304
Fax: +49 511 938-1305
E-mail: [email protected]
This press release is available in the following languages: Chinese, Czech,
Dutch, English, French, German, Hungarian, Japanese, Portuguese (Brazil),
Portuguese (Portugal), Romanian, Russian, Slovakian, Spanish
Links
Press portal on the internet: www.continental-press.com
Video portal on the internet:
http://videoportal.continental-corporation.com
Media database on the internet: http://www.continental-mediacenter.com
End of Corporate News
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Language: English
Company: Continental AG
Vahrenwalder Straße 9
30165 Hannover
Germany
Phone: +49 (0)511 938-1068
Fax: +49 (0)511 938-1080
E-mail: [email protected]
Internet: www.conti.de
ISIN: DE0005439004
WKN: 543900
Indices: DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg,
Hannover, Stuttgart; Freiverkehr in Berlin, Düsseldorf,
München; Terminbörse EUREX; Luxemburg, SIX
End of News DGAP News-Service
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