Germany's Continental to buy U.S. firm Veyance for $1.9 billion

German tire and car parts maker Continental (CON.DE) has agreed to buy U.S. private equity investor Carlyle Group's (CG.O) Veyance Technologies, which once belonged to its rival Goodyear (GT.O), for 1.4 billion euros ($1.9 billion). Veyance, which employs 9,000 workers at 27 plants worldwide producing industrial hoses and belting, will be integrated into the German company's Contitech division, Continental said. Contitech can imagine further acquisitions after the purchase of the U.S. competitor, which will raise the share of non-automotive sales at Continental to 32 percent of group revenue from 28 percent, still short of a 40-percent goal, division chief Heinz-Gerhard Wente said on a conference call. Continental expects group sales to rise by more than 5 percent this year to about 35 billion euros as world auto markets recover, the company said last month.

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