Lanxess completes Petroflex acquisition

02 April 2008 08:19  [Source: ICIS news]

MUMBAI (ICIS news)--Lanxess has completed its purchase of a 70% stake in Brazilian rubber maker Petroflex for €200m ($312.5m), the German specialty chemicals company said on Wednesday.

The final purchase amount was €2m higher than what was announced earlier.

"Petroflex will be included in Lanxess’s consolidated financial statements from the second quarter of 2008," the company said in a statement, adding that it will shortly issue a public takeover offer for the remaining shares.

Lanxess has also appointed Joerg Schneider, a senior staff at its rubber chemicals business unit, as the CEO of Petroflex.

"Petroflex ideally complements our product portfolio and strengthens our position in one of the world’s most important growth markets," said Lanxess chairman Axel Heitmann.

The company has three production sites in Brazil at Cabo in Pernambuco state, Duque de Caxias in Rio de Janeiro, and Triunfo in Rio Grande do Sul state.

It exports about a third of its 400,000 tonnes annual synthetic rubber capacity which range from solution to emulsion rubber.

In 2007 Petroflex achieved sales of about €535m with 1,300 employees, of which around 600 were the company's own, Lanxess said.

($1 = €0.64)

By: Isha Jha
+65 6780 4359

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