ERJ staff report (DS)
Leverkusen, Germany -- Press reports suggest that Lanxess is negotiating to buy rubber and rubber chemicals supplier, Eliokem. Both parties declined to comment on rumours. The Financial Times Deutschland claimed Lanxess officials met last week with bankers and Eliokem managers, citing un-named sources.
Eliokem started life as part of Goodyear Chemical, supplying vinyl-pyridine latex and other speciality chemicals to the tyre industry. Goodyear divested the unit in 2001 to private equity supported by the existing management. The new business was led by its leader under Goodyear Jacques Collonges. A month ago, Collonges retired and the company brought in outsider, Patrice Barthelmes to act as CEO.
Under Collonges, Eliokem expanded capacity in Asia through investments in China and the acquisition and subsequent expansion of Apar Industries in India.