Mumbai: Lanxess AG, Germany’s biggest publicly traded specialty chemicals maker, agreed to acquire businesses in China and India to tap demand growth in emerging markets.
Lanxess said it will buy the chemical business of Mumbai- based Gwalior Chemical Industries Ltd for Rs536 crore ($114 million) including debt, the Leverkusen-based company said today in a DGAP statement. The German company will also buy the assets of Jiangsu Polyols Chemical Co., based west of Shanghai in Liyang, for an undisclosed price.
Gwalior, which makes sulfur chlorides for the agrochemical, pharmaceutical, flavor and fragrance industries, had sales of about €45.7 million and an operating profit margin of about 18% in the nine months through December, Lanxess said. Jiangsu had sales of about €10 million in 2008 and produces trimethylolpropane used in lubricants, paints and coatings.
Gwalior shares rose 5.1% to Rs107.4 as of 3:21 pm. IST, adding to a 5% gain on 5 June. The stock has more than doubled this year, for a market value of Rs2.65 billion.