HANOVER, Germany—Benecke-Kaliko A.G. plans to acquire the Hornschurch Group to expand its global presence and give the surface materials producer its first manufacturing operation in the U.S.
Part of Continental Corp.'s ContiTech A.G. division, Benecke-Kaliko said it is looking to gain access to new sales markets, particularly in North America, with the purchase.
“This acquisition is a strategically important and logical step for our company,” said Hans-Juergen Duensing, a member of the Continental executive board and CEO of ContiTech.
A ContiTech spokeswoman said Benecke-Kaliko's biggest gains from the acquisition will be generated in the industrial sector.
“Hornschurch generates more than half of its sales with industrial applications,” Duensing said. “We are thereby consistently and sustainably strengthening our global business outside the automobile industry.”
Financial terms of the transaction were not disclosed. Completion of the purchase is subject to the approval of antitrust authorities.
Based in Weissbach, Germany, and a producer of surface materials, the Hornschurch Group is a manufacturer of design, functional and compact films, foam laminates, and artificial leather for industrial applications—primarily for the furniture and construction industries—and for the automotive sector.
It has four production sites in both Germany and the U.S., and employs about 1,800. The company's plant in the U.S.—operated by O'Sullivan Films Inc., the American legal entity for the business and part of the Hornschurch Group—is located in Winchester, Va., the spokeswoman said. The facility will be Benecke-Kaliko's first manufacturing site in the U.S., she said.
Up until now, the firm has been operating out of a sales office to build a larger presence in the country, she added.
Upon completion of the sale, the acquired company will be integrated into Benecke-Kaliko, a developer and manufacturer of surface materials for passenger and commercial vehicles, the off-highway sector and other industries from seven facilities in Germany, China, Mexico, Poland and Spain.
In terms of what Benecke-Kaliko will retain staff-wise once the purchase is complete, the spokeswoman said it is too early to tell at this stage. The companies expect to receive approval from antitrust authorities by the end of the second quarter of 2017 at the latest.
“Until then, we will continue to operate as normal as two independent companies,” she said.
The Hornschurch Group generated sales of about $450 million in 2015 and employs more than 1,800 at its production facilities, the spokeswoman said.
Benecke-Kaliko had sales of about $603 million last year and a work force of around 2,600 at seven locations in Germany, Mexico, China, Poland and Spain.
O'Sullivan Films, a leading North American manufacturer and finisher of highly developed films and upholstery materials, has about 400 employees. It produces and markets materials for interior design, floor coverings, special products for medical technology, and consumer products.
Focusing on local production for the Hornschurch Group's customers in the NAFTA region, the U.S. business reported a marginal decline in sales to $119.3 million for the 2015 financial year after a strong sales year in 2014 when it had $120.9 million in sales.