By Mike McNulty, Crain News Service
HANOVER, Germany (Feb. 10, 2014) — Continental A.G. plans to purchase Veyance Technologies Inc. from the Carlyle Group for an estimated $1.91 billion.
Once the transaction—which is subject to the approval of antitrust authorities—is complete, Veyance will be integrated into Continental's ContiTech A.G. division. The deal will expand the division's position in rubber and plastics technologies on a global basis, said Elmar Degenhart, chairman of Continental's executive board in Hanover.
Pro forma sales from a ContiTech-Veyance merged operation would be more than $7.3 billion, and the combined firm would employ about 39,000.
Fairlawn, Ohio-based Veyance achieves about half its sales in the U.S.
Acquisition of the company "will complement our ContiTech division in key markets where our presence is limited, particularly in the U.S. and South America," according to Heinz-Gerhard Wente, a member of Continental's executive board 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."
He added that "the Power Transmission Group and Air Spring Systems (business units) also will achieve positive results from the merger."
Veyance has 27 plants spread around the world and a work force of about 9,000 employees.
This report appeared on the website of Rubber & Plastics News, an Akron-based sister publication of Tire Business.
Does your business have a shortage of young skilled workers?
|Yes, there are no young people working at our company.||
16% (26 votes)
|Yes, but we’re grooming a few young workers.||
36% (59 votes)
|No, we have a good mix.||
24% (39 votes)
|We’re desperate for young workers and think the industry should do more to offer training opportunities.||
24% (39 votes)
|Total votes: 163|