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Continental acquires Veyance Technologies


February 10, 2014
By ContiTech

February 10, 2014, Fairlawn, Ohio 10 – Continental, an
international automotive supplier, tire manufacturer and industrial partner
headquartered in Hanover, Germany, announced today that it has concluded an
agreement with The Carlyle Group, Washington D.C., for the purchase of Veyance
Technologies Inc. The deal is worth approximately 1.4 billion Euro.

February 10, 2014, Fairlawn, Ohio 10 – Continental, an
international automotive supplier, tire manufacturer and industrial partner
headquartered in Hanover, Germany, announced today that it has concluded an
agreement with The Carlyle Group, Washington D.C., for the purchase of Veyance
Technologies Inc. The deal is worth approximately 1.4 billion Euro.

Veyance operates globally in the field of rubber and
plastics technology and in 2013 recorded sales of approximately 1.5 billion
Euro, around 90 percent of which were achieved outside the automotive industry.
Veyance has 27 plants around the world and a workforce of about 9,000 employees
at the end of 2013. The acquisition is subject to the approval of the responsible
anti-trust authorities.

“Veyance’s business and geographic presence complements
Continental’s existing global footprint, and the planned integration of Veyance
into our ContiTech division will expand our position in rubber and plastics
technologies on a worldwide basis. Furthermore this acquisition will enable
Continental to come a step closer to its strategic goal of increasing further
our proportion of sales to industrial customers and private end users.
ContiTech itself will achieve some 60 percent of its sales outside the
automotive OE sector in future,” said Dr. Elmar Degenhart, chairman of
Continental’s Executive Board in Hanover.

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“Veyance Technologies will complement our ContiTech division
in key markets where our presence is limited, particularly in the US and South
America. Plants in Mexico, Canada, China, Australia and also South Africa will
provide additional opportunities,” explained Heinz-Gerhard Wente, member of the
Executive Board of Continental AG 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 also will achieve positive results from the merger.”

“ContiTech and Veyance are a great fit for each other,” says
John S. Hamilton, chief executive officer of Veyance Technologies Inc. “In
addition to the complementary geographic and product mix, we bring an
organization and culture which delivers on our commitments to customers,
employees, and our communities. We look forward to becoming valuable members of
the ContiTech team to continue building upon our shared culture of innovation
and providing value to customers.”