HANOVER, Germany — Continental A.G.'s agreement to purchase an Italian plastics hose manufacturer will go a long way in the firm's ongoing program to find "smart solutions beyond rubber" in its ContiTech A.G. non-tire business.
Conti reached an agreement in early July to purchase the flexible hose business from Daverio, Italy-based Merlett Group for an undisclosed amount. Completion of the acquisition is subject to clearance by the respective antitrust authorities, according to a Conti release announcing the deal.
Conti said the purchase will diversify its product portfolio and broaden its regional presence, particularly in Europe. Once the deal is completed, the Hanover-based conglomerate will gain all of Merlett Group's activities, which include two hose manufacturing factories in Italy and one in Switzerland, along with a network of sales offices in 12 European countries.
Merlett, which employs nearly 500, was founded in 1952 by the Tamborini family. It deigns, makes and distributes thermoplastic hoses for the agriculture, industrial, construction, transport and food industries.
"Merlett is a true expert and one of the European leaders in that field," said Andreas Gerstenberger, ContiTech executive vice president and head of the firm's Industrial Fluid Systems global business unit. "We're adding by far more than just the manufacturing capacity, but also research and development, compounding materials know-how, access to new and different industries, and partly even countries for us in Europe."
This purchase also will help Conti's customers improve their production efficiency and economic effectiveness with Merlett's knowledge of thermoplastics. "This acquisition is another important step to become a global industrial solutions partner," Gerstenberger said. "The performance of thermoplastic materials is increasing, which is broadening the long-term base for future sensor applications."