HANOVER, Germany (April 4, 2001) — Continental A.G. has agreed to buy majority control of automotive electronics system supplier Temic GmbH from DaimlerChrysler A.G.
Continental Chairman Stephan Kessel called the move "a big step forward" in the company´s strategy to transform itself into a complete chassis systems supplier.
Conti is paying between $546 million and $555 million Nuremberg, Germany-based Temic. The company initially will hold 60 percent of Temic, with DaimlerChrysler retaining 40 percent; the final purchase sum will depend on when Conti exercises an option to buy the remaining shares.
Temic will add about $965 million in sales to Conti´s annual ledger. Operating from 10 manufacturing plants, Temic makes electric and electronic drive and chassis components, passenger safety components, brake electronics, automotive sensor systems, ranging systems, body electronics and small electric engines, Conti said.
Temic will be managed by Wolfgang Ziebart, Continental´s board member responsible for the Continental Automotive Systems Division. Temic already is a supplier of brake electronics and sensors for Conti Automotive´s ABS braking and ESP stability control systems.