Continental has concluded its acquisition of the U.S. rubber company Veyance Technologies Inc, of Fairlawn, Ohio. The Brazilian antitrust authority CADE (Council for Economic Defence) cleared the transaction with certain conditions, thus providing the approvals necessary for completion. International automotive supplier, tire manufacturer and industrial partner Continental is boosting its worldwide industrial business with this acquisition, which is the most significant acquisition in recent corporate history. The transaction is valued at 1.4 billion euros.
Veyance operates globally in the field of rubber and plastics technology and in 2013 recorded sales of some 1.5 billion euros, around 90 percent of which were achieved in 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.A. Other important markets include Latin America, Africa, China and other countries in Asia. The product focus is on conveyor belts, hoses and power transmission belts. In 2013, ContiTech and Veyance together achieved sales totaling some 5.4 billion euros and employed around 38,000 staff worldwide.
Because of the significance of the acquisition, antitrust authorities worldwide had spent the last eleven months scrutinizing the purchase and its impact on the respective markets. In response to the structural concerns expressed by some of the antitrust authorities, Continental will divest Veyance’s air springs business in NAFTA and its current steel-cord belting business in Brazil. In total, around 600 employees work in the operations that are to be divested.