Continental Aims to Strengthen Industrial Business and Open Up New Sales Markets for Surface Materials
Oct 15, 2016
- Agreement reached on acquisition of the Hornschuch Group
- Benecke-Kaliko: boost to global presence and access to new markets
Hanover, October 15, 2016. Surface specialist Benecke-Kaliko, a subsidiary of international technology company Continental, is intending to expand its industrial business further and open up new sales markets, particularly in North America. A corresponding agreement on the purchase of the Hornschuch Group, based in Weißbach, Germany, has been brokered. “This acquisition is a strategically important and logical step for our company. Hornschuch generates more than half of its sales with industrial applications. We are thereby consistently and sustainably strengthening our global business outside the automotive industry,” explained Hans-Jürgen Duensing, member of the Continental Executive Board and CEO of ContiTech AG. Completion of the acquisition is subject to the approval of the respective antitrust authorities.
The Hornschuch Group is one of the leading manufacturers of design, functional and compact films, foam laminates, and artificial leather for industrial applications (furniture and construction industry) and for the automotive sector. Hornschuch generated sales of €410 million in the 2015 fiscal year, with more than 1,800 employees working at four production sites in Germany and the U.S.A.
“For Benecke-Kaliko, this is the largest acquisition in the company’s history. Two strong, international companies, each with many years’ standing, are joining forces and combining their strengths so that they can address customer needs with an even more tailor-made approach,” added Dr. Dirk Leiß, CEO of Benecke-Kaliko AG. “The Hornschuch Group’s well-established international sales network will also help us to reach customers for our products in areas where our profile is currently not as strong,” Leiß went on to say.
Dr. Hans-Hinrich Kruse, CEO of the Hornschuch Group, expressed a similar view. “Together with our employees, and with the help of our financial investor, we have experienced dynamic growth in recent years. The merger with Benecke-Kaliko now offers an outstanding opportunity in terms of our future continued development in our markets worldwide. We are certain that both companies will benefit from this strategic step.”
Hornschuch is to be integrated into Benecke-Kaliko. The corporation is able to finance the acquisition entirely from its own liquid assets and available lines of credit.
Benecke-Kaliko AG, part of the ContiTech division of the Continental Corporation, develops and manufactures surface materials for passenger and commercial vehicles, the off-highway sector, and other important industries at seven locations in Germany, China, Mexico, Poland, and Spain, and operates 16 international sales offices in North and South America, Asia, and Europe. The company achieved sales of approximately €550 million in 2015.