Continental AG plans to purchase Veyance Technologies Inc. from the Carlyle Group for an estimated $1.91 billion.
Once the transaction, subject to the approval of antitrust authorities, is complete, Veyance will be integrated into Continental's ContiTech AG division. The deal will expand the division's position in rubber and plastics technologies on a global basis, said Elmar Degenhart, chairman of Continental's executive board in Hanover, Germany.
Pro forma sales from a ContiTech-Veyance merged operation would be more than $7.3 billion, and the combined firm would employ about 39,000. Veyance achieves about half its sales in the U.S.
Veyance, based in Fairlawn, Ohio, "will complement our ContiTech division in key markets where our presence is limited, particularly in the U.S. and South America," according to Heinz-Gerhard Wente, a member of Continental's executive board and CEO of the ContiTech division.
"Veyance and ContiTech complement each other geographically, and ContiTech's Conveyor Belt Group and Fluid Technology business units in particular will benefit from an enhanced global presence.
"The Power Transmission Group and Air Spring Systems [business units] also will achieve positive results from the merger."
Veyance has 27 plants spread around the world and a work force of about 9,000 employees.