Continental AG expanded its overseas auto operations after it purchased Parker Hannifin’s automotive air-conditioning business.
ContiTech unit announced the acquisition on Monday, August 13th, together with the addition of 1,000 employees at five of the US based company plants in Mexico, China, the Czech Republic and South Korea. Parker Hannifin’s air-conditioning unit provides profits of $140 million annually and manufactures containment components and refrigerant control for light truck and passenger car air conditioning applications.
“The acquisition is perfectly in line with our growth strategy,” said ContiTech CEO Heinz-Gerhard Wente today in Hanover. “Parker has an excellent presence among the American and Japanese automotive manufacturers and will open additional doors for us in Asia.”
This is one of ContiTech’s largest acquisitions in its entire history, but the company still has to receive the approval of the antitrust authorities. The air-conditioning unit will now be part of ContiTech’s Fluid Technology Business Unit. Currently, air conditioning lines are manufactured by ContiTech’s Fluid Technology business, which has 14,000 employees and generates profit of €1.3 billion in sales.
“We will be a global partner for (auto) manufacturers such as Ford, GM and Honda after this acquisition,” added Heinz-Gerhard Wente.