Hanover, Germany - German auto parts maker Continental AG is buying rubber and plastics maker Veyance Technologies Inc. from private equity firm The Carlyle Group for US$1.91-billion. Veyance is a former Engineered Products Group of Goodyear Tire & Rubber Co., renamed such when Goodyear sold the group to Carlyle.
The Canadian operation of the company, Veyance Technologies Canada, had made power transmission belts for industrial and automotive applications in a plant in Owen Sound, ON, which closed in February 2012.
Continental said the deal will complement its existing operations and expand its position in rubber and plastics technology on a worldwide basis.
It plans to incorporate the business into its Contitech unit.
Veyance is based in Ohio and generated revenue of US$2.05-billion in 2013. It has 27 plants worldwide and a workforce of about 9,000 employees.
The deal still faces anti-trust regulatory approval before it can close.