AKRON (Feb. 26, 2015) — For ContiTech and Veyance Technologies, the old axiom that the best things in life are worth waiting for rings true.
While the nearly year-long wait to gain the necessary approvals was longer than the top executives of the firms had hoped, the deal was finalized at the end of January. Now the real work begins.
From all appearances, it will be the type of acquisition where all involved will benefit. Heinz-Gerhard Wente, a member of parent firm Continental A.G.'s executive board and CEO of ContiTech, has maintained all along that the purchase will be one of growth, not restructuring.
Officials say all the time that a deal is “complementary,” but that truly is the case here.
ContiTech is strong in Europe and Asia, but lacked a significant presence in North America. Veyance brings that and more, including a sales and distribution network Mr. Wente says will stay in place.
ContiTech and Continental are looking to become less dependent on the automotive sector. The vast majority of Veyance's business comes from industrial customers, giving Conti a boost toward its goal of having 40 percent of its business come from non-automotive markets.