Continental has concluded an agreement with The Carlyle Group relating to the purchase of Veyance Technologies Inc., Fairlawn, Ohio, for approximately 1.4 billion euros ($1.9 billion USD).
Veyance operates globally in the field of rubber and plastics technology. In 2013, around 90% of Veyance’s recorded sales were achieved outside the automotive industry. The tiremaker expects the purchase of Veyance to boost profit of its ContiTech unit immediately upon completion, Continental said today in a statement.
“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.
Combined with Veyance, ContiTech will have sales of approximately 5.4 billion euros and employ 39,000 people globally. Carlyle bought Veyance Technologies, previously known as Goodyear Engineered Products, for $1.5 billion in 2007. Today, it generates about half of its sales in the U.S.
The acquisition is subject to the approval of the responsible anti-trust authorities. The deal can be financed from available cash and credit lines and is expected to close by the beginning of the fourth quarter.
