The auto parts and tire company, which is Europe’s second biggest in both areas, has announced it aims to focus on the profitability of future acquisitions, as it aims to gain more independence from the auto industry.
This February Continental decided to acquire from the Carlyle Group their Veyance Technologies subsidiary in a 1.4 billion euros ($1.92 billion) deal that seeks to boost their ContiTech plastics and rubber division.
“For years now, we have been persistently expanding our room for maneuvering,” Chief Executive Officer Elmar Degenhart said in the text of a speech at a press conference in Frankfurt. “We have now gained the financial flexibility for larger acquisitions.”
While Continental AG aims to see its future revenue provided by outside auto industry businesses amount to 40% of the total, at the moment the deal to purchase the US based Veyance would increase from 28 to 32% the outside revenue share – with the deal scheduled for completion in the fourth quarter of 2014.
In its core auto parts and tire making business, is seeking the fifth record sales in as many years, aiming to boost sales of components like parking-assistance systems and braking electronics – which aided the company last year in boosting deliveries.