Germany's Continental AG buys auto interior specialist Hornschuch

German automotive manufacturer Continental AG on Saturday said that it has acquired its local rival Hornschuch in order to strengthen its auto-interiors unit.

Continental, the world's second-largest automotive supplier by revenue, did not reveal the financial terms of the transaction, but said that it will fund the acquisition entirely from its own liquid assets and available lines of credit.

Continental, based in Hanover, acquired Hornschuch through its subsidiary Benecke-Kaliko AG from private equity firm Equistone, (formerly Barclays Private Equity).

Founded in 1898 as Textilgesellschaft Weissbach, Hornschuch designs and manufacturers compact films, foam laminates, and artificial leather for for the automotive sector and for the furniture and construction industry.

It has more than 1,800 employees and four production sites in Germany and the US.

Hornschuch, based in the Kocher Valley, in Weissbach near Heilbronn, generated sales of €410 million last year.

Benecke-Kaliko, part of the ContiTech division of the Continental Corp, develops and manufactures surface materials for passenger and commercial vehicles, the off-highway sector, and other industries.

Its production sites are located in Germany, China, Mexico, Poland, and Spain, and operates 16 international sales offices in North and South America, Asia, and Europe.

The company generated sales of around €550 million in 2015.

For Benecke-Kaliko, this is the largest acquisition in the company's history. Two strong, international companies, each with many years' standing, are joining forces and combining their strengths so that they can address customer needs with an even more tailor-made approach,'' said, Dr Dirk Leiß, CEO of Benecke-Kaliko AG.

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.''