Continental acquires Veyance after CADE approval

By |  February 2, 2015

Continental concluded its acquisition of U.S. rubber company Veyance Technologies after receiving approval from Brazilian antitrust authority CADE (Council for Economic Defense). The transaction is valued at 1.4 billion euros.

Veyance specializes in producing conveyor belts, hoses and power transmission belts, and the company operates 27 plants around the world. In 2013, Continental and Veyance together achieved sales totaling 5.4 billion euros.

“By integrating Veyance in our ContiTech division, we are expanding our global position in rubber and plastics technologies,” says Dr. Elmar Degenhart, chairman of Continental’s executive board in Hanover. “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. 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.”

Because of structural concerns expressed by some antitrust authorities, Continental will divest Veyance’s air springs business in NAFTA and its current steel-cord belting business in Brazil.

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About the Author:

Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.

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