LANXESS AG / Acquisition 08.06.2009 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- LANXESS underpins BRIC strategy with two acquisitions in Asia Leverkusen/Mumbai/Shanghai - Specialty chemicals group LANXESS AG is underpinning its long-term growth strategy in the BRIC countries with two acquisitions in Asia. LANXESS subsidiary LANXESS India Private Ltd. will acquire the chemical businesses and assets of stock market listed Indian company Gwalior Chemical Industries Ltd. for EUR 82.4 million, including debt. A corresponding agreement was reached with the company. The transaction is subject to formal approval by Gwalior's shareholders and clearance by the relevant antitrust authorities. Closing is expected at the end of the third quarter of 2009. LANXESS will also acquire the business and production assets of Chinese-based Jiangsu Polyols Chemical Co. Ltd. Both parties have agreed not to disclose the purchase price. Closing of this transaction is expected in the third quarter of 2009. The medium-sized company, which was founded in 2006, is located in Liyang, west of Shanghai. Founded in 1978, the Gwalior's company's headquarter is based in Mumbai and employs about 400 permanent staff. In the first nine months of its business year 2008/2009, the Indian company achieved sales of approximately EUR 45.7 million and an above-peer EBITDA margin of approximately 18%. Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals and pharmaceuticals as well as for the flavor & fragrance industries. Its production sites are in Nagda, Madhya Pradesh state, and in Ankleshwar, Gujarat state. In the future, production will be concentrated at the modern Nagda site, which is currently expanding capacities. LANXESS will acquire Gwalior's chemical businesses which will complement the portfolio of the Basic Chemicals business unit and strengthen LANXESS production base in the Indian market. The acquisition will be financed out of existing liquidity. The transaction is expected to be EPS accretive as of 2010. Jiangsu Polyols achieved sales of about EUR 10 million in 2008 and currently employs some 170 staff at a facility with competitive technology. It mainly produces trimethylolpropane (TMP) that is used in lubricants, paints and coatings. LANXESS's business unit Basic Chemicals is already a major supplier of TMP in China and will integrate Jiangsu into its global operations. The Basic Chemicals business unit belongs to the Advanced Intermediates segment, which achieved total sales in 2008 of EUR 1.3 billion. The segment has proven to be one of LANXESS' more stable businesses in the economic crisis due to its exposure to the agrochemical industry. Leverkusen, June 8, 2009 Forward-Looking Statements This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. DGAP 08.06.2009 --------------------------------------------------------------------------- Language: English Issuer: LANXESS AG Gebäude K10 51369 Leverkusen Deutschland Phone: +49 (0)214 30 33333 Fax: +49 (0)214 30 40 944 E-mail: ir@lanxess.com Internet: www.lanxess.com ISIN: DE0005470405 WKN: 547040 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart; Terminbörse EUREX End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: LANXESS AG: LANXESS underpins BRIC strategy with two acquisitions in Asia
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