A division of auto supply giant Continental AG has purchased a supplier of cover skins to the auto, furniture, medical and construction industries to increase its exposure to both the U.S. and non-automotive markets.
Continental's Benecke-Kaliko, which is part of Continental's ContiTech unit, announced an agreement to acquire Hornschuch Group in a news release earlier this month.
Although Hornschuch, like Continental, is based in Germany, it also is the owner of O'Sullivan Films Inc. of Winchester, Va., which brings it increased U.S. business. What is now O'Sullivan was once a film business within PolyOne Corp. O'Sullivan was created in 2005 in an acquisition from PolyOne by management and private equity. Hornschuch purchased the business in 2010.
Hornschuch Group, based in Weissbach, Germany, manufactures compact films, foam laminates and artificial leather for industrial applications and for the automotive sector. The company saw sales of 410 million euros ($415.7 million) in 2015, but a financial figure for the acquisition by Benecke-Kaliko has not been disclosed.
With O'Sullivan, Hornschuch also makes vinyl pool liners, medical care storage films and wall coverings.
Hornschuch will become part of Benecke-Kaliko subject to approval from antitrust authorities. Benecke-Kaliko states that it is able to finance the acquisition from its own liquid assets and available lines of credit.
Hans-Jürgen Duensing, a member of the Continental executive board and CEO of ContiTech said: “This acquisition is a strategically important and logical step for our company. Hornschuch generates more than half of its sales with industrial applications. We are thereby consistently and sustainably strengthening our global business outside the automotive industry.”
Dirk Leiss, CEO of Benecke-Kaliko stated: “For Benecke-Kaliko, this is the largest acquisition in the company's history. Two strong, international companies, each with many years' standing, are joining forces and combining their strengths so that they can address customer needs with an even more tailor-made approach. The Hornschuch Group's well-established international sales network will also help us to reach customers for our products in areas where our profile is currently not as strong.”
Hornschuch Group currently employs more than 1,800 people, who work at four production sites in Germany and the US.
Benecke-Kaliko operates out of 7 locations in Germany, China, Mexico, Poland, and Spain, and has 16 international sales offices in North and South America, Asia, and Europe. The company saw sales of around 550 million euros ($604.8 million) in 2015.