ContiTech Announces one of the Largest Acquisitions in Company History

HANOVER, Germany, Aug. 13, 2012 /PRNewswire/ -- ContiTech is strengthening its business in hose lines for the automotive industry. The Continental Corporation's specialist for rubber and plastic technology (non-tire applications) today announced the acquisition of the automotive air conditioning business of the Collierville, Tennessee-based Mobile Climate Systems division of Parker Hannifin Corporation. This acquisition includes plants in Mexico (Monterrey and Montemorelos), the Czech Republic (Chomutov), South Korea (Chonan) and China (Wuxi). ContiTech will take on approximately 1,000 employees in total from this acquisition. The acquired business manufactures refrigerant control and containment components for passenger car and light truck vehicle air conditioning applications.

It is one of the largest acquisitions in ContiTech's history. The relevant agreements have today been signed, however the transaction is still subject to the approval of the antitrust authorities. The acquired business will be integrated into ContiTech's Fluid Technology Business Unit.

"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. After the acquisition, we will also become a worldwide partner for manufacturers such as Ford, GM and Honda."

Air conditioning lines are produced by ContiTech's Fluid Technology business unit which, with around €1.3 billion in sales and around 14,000 employees, is the technology company's largest business unit. The Fluid Technology business unit is a development partner and original equipment manufacturer of components and systems. It possesses wide-ranging material and process competence within the automotive industry and in many other major industries. The business unit uses rubber, plastics, textiles, steel and aluminum in the manufacture of hoses, curved hoses, hose lines and pipelines, as well as the fittings for these applications.

With sales of €30.5 billion in 2011, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 169,000 employees in 46 countries.

The ContiTech division is one of the global leading suppliers of technical elastomer products in the non-tire rubber sector and a specialist for plastic technology in the non-tire rubber sector. It develops and produces functional parts, components and systems for the automotive industry and other important industries. ContiTech employs some 27,250 staff and generated sales of around €3.6 billion in 2011.

SOURCE Continental Corporation