Continental strengthens global footprint with Trelleborg printing acquisition

HANOVER, Germany—Change is good when it involves expansion and growth. Fortunately, that is exactly the kind of change taking place at Continental Surface Solutions, part of Continental A.G.'s ContiTech unit.

Continental in May acquired the Lodi Vecchio, Italy-based printing technology business from Trelleborg Group. The acquisition, Continental said, is a strategic step in the expansion of its surface solution offerings in the field of printing technology, and it offers a way to boost business with industrial clients.

Sven Hlywiak, senior vice president of Segment LivTec Continental Surface Solutions, leads the global industrial activities outside the automotive sector in the company's surface solutions business area. This acquisition, he said, is a win-win, especially for the company's customer base.

"Everyone gains from the merger," Hlywiak said. "The product portfolios of the two companies complement one another and are both characterized by a high level of brand awareness. Both businesses are already synonymous with innovation and quality in their own right. This move pools our collective expertise, allowing customers to benefit from impressive capabilities and an even broader global presence."

Continental has around 800 employees developing, manufacturing and selling comprehensive solutions for printing technology and coated fabrics at three sites in Germany, one in China and one in Singapore. Trelleborg's Printing Solutions business unit employs around 600 people worldwide at eight sites in seven countries—Italy has two sites, while Brazil, China, Slovenia, France, the U.S. and Japan each have one.

With the acquisition, Continental has a combined 1,400 employees at 12 sites working in this area. All in all, Continental Surface Solutions as a business area within the ContiTech sector employs around 6,000 people.

Continental did not disclose financial details about the acquisition, but Hlywiak said the recorded sales revenues of Trelleborg's Printing Solutions business were around $120.9 million in 2022.

This is yet another strategic divestment from Trelleborg, which has refocused for growth. Trelleborg Wheel Systems was acquired by Yokohama Rubber Co. Ltd. in May, a deal valued at $2.3 billion on a cash and debt-free basis.

At the end of last year, the Swedish rubber products maker signaled its intention to grow through mergers and acquisitions. In addition to growing its global footprint, Trelleborg indicated M&A would help with growth in certain segments, particularly health care, medical, aerospace, green aviation, semiconductor business, e-mobility and sensor technology.

According to Rubber News' latest ranking data, Trelleborg was the No. 9 largest manufacturer globally of non-tire rubber products, ending 2021 with $2.77 billion in sales.

Trelleborg's printing technology business will be integrated into the LivTec industrial segment of Continental's Surface Solutions business area. All sites and plants already are operating under the Continental name and logo.

"The two product portfolios complement each other very well," Hlywiak said. "We now have access to each other's technologies, processes and portfolios, which were independently developed over many years. Because of this, we can now follow a best-of-the-best approach."

Moreover, the acquisition strengthens Continental's footprint globally and across four continents, offering a much more balanced presence for clients.

"Asia, in particular, is an important market in our strategy, and expanded growth there is part of our vision and mission," Hlywiak said. "This acquisition will strengthen Asia as a growth market for us, especially because printing in general is still a strong growth area there."

Trelleborg Printing Solutions mainly produced printing blankets for offset and digital printing. Hlywiak believes the acquisition will strengthen Continental in this area and add to the company's growth.

"Packaging printing on completely different materials is a very promising business area, which we intend to expand," Hlywiak said. "Speaking in general terms, the two companies have been active in this sector for decades, and both have gradually expanded their business. This was only made possible by continuous investment in the business."

Continental's goal is to expand its current industries while growing regionally. With a stronger global orientation, the company believes it can serve its customers much more flexibly, making the industries already being served even more important.

"We fully focus on service to our customers and clearly want to be their first choice," Hlywiak said.

Hlywiak said that the product lines offered by Trelleborg will become part of the current product offerings. Some of the top brands added to the long list of products from Continental (such as Conti Laserline, Conti-air Blanket Tech, and Phoenix Extra), include Vulcan, Rollin, Printec, Sawa and Axcyl.

"As a result of the acquisition, we will offer our customers an even more diverse product portfolio with the high quality they are accustomed to," Hlywiak said. "In the future, customers will be able to choose from our even more extensive portfolio, with all Continental and Trelleborg products available from a single source. This will enable us to adapt individually to the customer's needs, with our broad global presence bringing us even closer to our customers, allowing us to provide even better advice and even faster deliveries.

"Our customers will benefit from the combined expertise and know-how of two printing technology specialists. Together, we make a reliable, financially sound and highly capable partner renowned for its combined capacity for innovation and equally impressive commitment to quality."

Continental, with an estimated $6 billion in non-tire rubber product global sales, was ranked as the world's second-largest non-tire rubber product maker in 2022 by Rubber News.