DGAP-Adhoc: LANXESS AG: LANXESS underpins BRIC strategy with two acquisitions in Asia

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.
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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 
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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
 
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