LEVERKUSEN, Germany (Dec. 13, 2007) — Lanxess A.G. plans to acquire about 70 percent of Petroflex S.A., a Rio de Janeiro, Brazil-based synthetic rubber producer, the companies announced Dec. 13.
The provisional price of the transaction is just more than $290 million, Lanxess said. The interest includes holdings of the two majority shareholders, Brazilian industrial companies Braskem S.A. and Uniao de Industrias Petroquimicas S.A.
Axel C. Heitmann, chairman of Lanxess' management board, said Petroflex will complement the company's product portfolio and strengthen its position in one of the world's most important growth markets.
"In this way, we are significantly expanding our position in Latin America as a whole," he said.
Last year, Petroflex had sales of about $729 million and employed about 1,300 employees, Lanxess said. The production output at the company's three Brazilian manufacturing sites is expected to exceed 400,000 metric tons in 2007.
Petroflex's elastomer products range include solution and emulsion rubbers, making up about 70 brands. The SR is used in tire manufacturing and for tubing and plastics, and about a third of its product is exported to more than 70 countries.