Continental AG, Hanover, Germany, has signed an agreement to acquire Veyance Technologies Inc., Fairlawn Ohio, USA, for 1.9 billion US-Dollar. The business of Veyance comprises engineering, manufacturing and selling products made of rubber and plastics, predominantly for industrial applications.
In 2013, Veyance Technologies Inc. has generated revenues of approximately 2 billion US-Dollar, of which more than 50% are allocable to the NAFTA-Region. The business has approx. 9,000 employees and has their main production and engineering facilities in the U.S., Canada, Mexico, South America and China. It produces and supplies, inter alia, conveyor belts, industrial hoses, air spring systems and power transmission belts. The business generated an EBITDA of 270 mn US-Dollar in 2013.
Upon closing of this transaction, the acquired business is planned to be integrated into Continental´s ContiTech Division, which generated according to preliminary data revenues of 3.9 bn € and an EBITDA of 576 mn € in 2013.
The transaction is subject to merger control clearance.
Hanover, February 10, 2014