It took nearly a year, but Continental's acquisition of U.S. rubber company Veyance Technologies is now complete. Fairlawn, OH-based Veyance was bought by Continental in February 2014 for $1.9 billion, expanding the European car parts supplier's capabilities with industrial hoses and conveyer belts production.
The transaction was completed Friday, after the Brazialian antitrust authority CADE (Council for Economic Defence) cleared the transaction with certain conditions, thus providing the approvals necessary for completion. Continental is boosting its worldwide industrial business with the acquisition, considered the most significant acquisition in recent corporate history.
Hanover, Germany-based Veyance had 2013 sales of $1.69 billion, an estimated 90 percent of which came from its industry business. The workforce at its 27 plants around the world totaled 8,500 at the end of 2013. Veyance Technologies generates around half of its sales in the U.S.
“By integrating Veyance in our ContiTech division, we are expanding our global position in rubber and plastics technologies. In addition, this acquisition will bring Continental a significant step closer to its strategic goal of further increasing the proportion of industrial and end-customer business in its sales,” said Dr. Elmar Degenhart, chairman of Continental’s Executive Board in Hanover. “Continental has financed the acquisition entirely from liquid funds and available lines of credit. Veyance will make an immediate positive contribution to the corporation’s profitability.”