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
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector 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]

Stocks mentioned in the article
ChangeLast1st jan.
BAYER 0.26% 92.96 Delayed Quote.-8.73%
LANXESS 1.68% 69.56 Delayed Quote.3.79%
MDAX 0.75% 26893.23 Delayed Quote.1.83%
MONSANTO 0.00%-End-of-day quote.9.57%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LANXESS
07/17LANXESS : strengthens research and development for aqueous polyurethane dispersi..
AQ
07/13LANXESS : strengthens research and development for aqueous polyurethane dispersi..
AQ
07/12Lanxess water treatment unit attracts interest - sources
RE
07/12LANXESS : strengthens research and development for aqueous polyurethane dispersi..
PU
07/02LANXESS : presents new solutions for the rubber processing industry; Pre-dispers..
AQ
06/29LANXESS : presents new solutions for the rubber processing industry
PU
06/28LANXESS : signs marketing and distribution cooperation agreement with filtration..
PU
06/22LANXESS AKTIENGESELLSCHAFT : Release of a capital market information
EQ
06/21LANXESS : at VIV Europe 2018, Jaarbeurs-Utrecht, The Netherlands, stand AO11, ha..
AQ
06/20LANXESS : Frederique van Baarle to head the Procurement and Logistics Group func..
PU
More news
News from SeekingAlpha
05/04Lanxess Ag 2018 Q1 - Results - Earnings Call Slides 
03/16Lanxess Ag ADR 2017 Q4 - Results - Earnings Call Slides 
03/13ROAD TO FINANCIAL INDEPENDENCE : My February 88-Stock Portfolio Review With Big .. 
02/06LANXESS (LNXSY) Presents At 13th HSBC SRI Conference - Slideshow 
01/18Lanxess Getting More, But Not All, Of Its Due 
Financials (€)
Sales 2018 6 980 M
EBIT 2018 596 M
Net income 2018 340 M
Debt 2018 2 281 M
Yield 2018 1,38%
P/E ratio 2018 17,53
P/E ratio 2019 15,74
EV / Sales 2018 1,23x
EV / Sales 2019 1,15x
Capitalization 6 297 M
Chart LANXESS
Duration : Period :
Lanxess Technical Analysis Chart | LXS | DE0005470405 | 4-Traders
Technical analysis trends LANXESS
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 73,3 €
Spread / Average Target 6,6%
EPS Revisions
Managers
NameTitle
Matthias Zachert Chairman-Management Board
Matthias L. Wolfgruber 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$)
LANXESS3.79%7 328
DOWDUPONT-7.72%154 007
BASF-9.44%88 799
ROYAL DSM12.11%18 858
GROUPE BRUXELLES LAMBERT1.01%17 069
EVONIK INDUSTRIES-0.57%16 914