Lanxess opens Euro 2bn acquisitions warchest

Leverkusen, Germany -- Lanxess AG has ready funds of Euro 1000 million to 1500 million available to fund acquisitions, said Matthias Zachert, chief financial officer of the company. However, chief executive, Axel Heitmann said the company has only just started looking at possible acquisition targets and declined to name any target, or any timescale in which a target or targets might be identified.

Zachert added that the company can access funds up to Euro 2000 million, but to do so would risk the investment rating the company currently enjoys from international debt rating companies. He said if the company did take advantage of those funds, it would expect to reduce debt to a more healthy level within a year or two.

Zachert added that Lanxess is not limited to using cash to fund acquisitions, nor to simple acquisitions. He said the company could issue more shares to fund a large acquisition, or it could develop a different kind of relationship with another company to bring new products into its portfolio.

Heitmann said Lanxess is now entering a new phase in its existence, one in which its portfolio of products will be continuously managed and adjusted. He said Lanxess has a proven track record of turning around under-managed companies and extracting greater value from them. He said this would be the main focus of any acquisitions in the short to mid-term.