| Renowned German company, Continental AG which manufactures premium tires and automotive components has strengthened its automotive interiors unit by acquiring another company based in Germany which specializes in automotive interiors, Hornschuch. |
Continental is the second largest automotive supplier in the world in terms of revenue and the the deal will be funded completely from its liquid assets and the available lines of credit. Further financial details were not disclosed. Continental took over Hornschuch from private equity firm Equistone (formerly Barclays Private Equity) through its subsidiary Benecke-Kaliko AG.
Hornschuch has a history going back more than 100 years as it was established in 1898 as Textilgesellschaft Weissbach. The company designs and produces artificial leather, compact films and foam laminates for the automotive sector as well as the construction and the furniture industry. The company has over 1,800 employees and four production units in Germany and the United States.
Hornschuch,, which is headquartered in the Kocher Valley, in Weissbach near Heilbronn, had sales revenue of 410 million euros last year.
Benecke-Kaliko, is part of Continental’s subsidiary, ContiTech, which specializes in development and manufacture of surface materials for passenger and commercial vehicles, the off-highway sector, and other industries. The company, which generated sales revenue of 550 million euros last year, has 16 international sales offices spread across Europe, Asia, and North and South America in addition to factories in Poland, Germany, China, Mexico and Spain.
The Hornschuch acquisition will be the largest such deal in Benecke-Kaliko’s history and according to Dr Dirk Leiß, CEO of Benecke-Kaliko AG the deal will bind two strong companies who both have expertise of many years and will be able to operate with greater synergy and cater to the needs of customers with a more tailormade approach as a result of the deal.
Dr. Hans-Hinrich Kruse, CEO of the Hornschuch said, ”The merger with Benecke-Kaliko now offers an outstanding opportunity in terms of our future continued development in our markets worldwide. We are certain that both companies will benefit from this strategic step.” |
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