Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Lanxess    LXS   DE0005470405

LANXESS (LXS)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Lanxess Shares Rise on Acquisition of Chemtura

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/26/2016 | 02:35am CEST

FRANKFURT-Shares in Germany's Lanxess AG jumped Monday on news the chemicals company would buy U.S.-based Chemtura Corp. for ?2.4 billion ($2.7 billion), in a deal that should help it expand beyond its synthetic rubber business.

At 1300 GMT, shares in the midcap company were up 7.7% at ?52.44, topping the MDAX index.

Lanxess said the acquisition-its largest ever-would expand its activities in additives for lubricants and flame retardants and strengthen business in North America. The value of the deal corresponds to roughly $33.50 per share of Chemtura. That represents an 18.9% premium to the stock's closing price of $28.18 on Sept. 23, Chemtura said.

The acquisition adds to a crowd of outbound deals by German companies this year. This month, Lanxess's former parent company, Bayer AG, announced a $57 billion agreement to buy Monsanto Co. in the U.S., putting 2016 on track to be the biggest year for German outbound M&A since 2007, according to data from Dealogic.

Lanxess hasn't made a secret of being on the hunt for acquisitions. The Chemtura buy is part of its strategy to move further away from its synthetic rubber business, which has been pinched by overcapacity and has a high exposure to the car and tire industry. In September last year, the company sold a 50% stake in the business to Saudi Aramco for ?1.2 billion.

"With this acquisition, we are forming a major global player in the field of additives and are significantly strengthening our already profitable portfolio," Lanxess Chief Executive Matthias Zachert said.

Lanxess now counts among its core activities high performance plastics, ingredients for drugs, pigments for construction materials, and water treatment technologies.

The German company plans to fund the deal with existing liquidity and issuing new debt. Lanxess said it secured bridge financing, which will quickly be refinanced via senior bonds and a hybrid bond. The deal, which is subject to approval from Chemtura shareholders and antitrust authorities, is expected to close around mid-2017.

To preserve liquidity, Lanxess said it would scrap a share buyback announced earlier this year.

The acquisition of Chemtura would be Lanxess's second acquisition of a U.S.-based company. Earlier this year, it bought the cleaning and disinfectant specialist business of Chemours for roughly ?210 million. Previous acquisitions included the 2010 takeover of DSM Elastomers for about ?310 million and Brazil's rubber maker Petroflex in 2008 for ?280 million.

"Given the business fit of the two companies and the reasonable price tag, we regard Lanxess's move as a positive one," said Oliver Schwarz of Warburg Research. He said the company's aim of achieving 100 million euros in recurring synergies was "ambitious, but achievable."

Mr. Zachert said he didn't expect any major antitrust hurdles to closing the deal. On a conference call, he said he couldn't rule out rival bidders for Chemtura, but didn't expect another company could offer the same complementarity and synergy potential.

Write to Natascha Divac at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LANXESS
09/18 LANXESS : at FAKUMA October 17, 21, 2017 Messe Friedrichshafen, Hall B4, Booth 4..
09/15 LANXESS : at FAKUMA, October 17 - 21, 2017, Messe Friedrichshafen, Hall B4, Boot..
09/14 LANXESS : Focus on new forms of mobility
09/07 LANXESS : listed in the Dow Jones Sustainability Indices Europe and World
09/06 LANXESS : accelerates profitable growth
08/24 LANXESS : Multiaxial, reinforced Tepex for backseat load-through of an offroad v..
08/24 LANXESS : Multiaxial reinforced Tepex for backseat load through of an off-road v..
08/24 LANXESS : Over 40 percent lighter than steel counterpart
08/22 CHEMTURA : Plant workers exchange hard hats for solar eclipse glasses
08/21 LANXESS : pigments used in Formula E
More news
News from SeekingAlpha
08/10 Lanxess' (LNXSF) CEO Matthias Zachert on Q2 2017 Results - Earnings Call Tran..
08/10 Lanxess Ag reports Q2 results
08/10 Lanxess Ag 2017 Q2 - Results - Earnings Call Slides
05/31 Berkshire and Citadel square off on German chemical company
05/11 LANXESS' (LNXSF) CEO Matthias Zachert on Q1 2017 Results - Earnings Call Tran..
Financials (€)
Sales 2017 9 627 M
EBIT 2017 681 M
Net income 2017 222 M
Debt 2017 2 182 M
Yield 2017 1,32%
P/E ratio 2017 27,45
P/E ratio 2018 15,90
EV / Sales 2017 0,86x
EV / Sales 2018 0,89x
Capitalization 6 055 M
Chart LANXESS
Duration : Period :
Lanxess Technical Analysis Chart | LXS | DE0005470405 | 4-Traders
Technical analysis trends LANXESS
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 71,0 €
Spread / Average Target 7,3%
EPS Revisions
Managers
NameTitle
Matthias Zachert Chief Executive Officer
Rolf Wilhelm Heinrich Stomberg Chairman-Supervisory Board
Michael Pontzen Chief Financial Officer
Werner Czaplik Member-Supervisory Board
Theo H. Walthie Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
LANXESS6.14%7 237
BASF0.14%96 969
GROUPE BRUXELLES LAMBERT10.30%16 964
EVONIK INDUSTRIES3.95%16 468
ROYAL DSM18.33%14 685
MITSUBISHI CHEMICAL HOLDINGS CORP.38.39%14 119