UPDATE 1-Lanxess buys India's Gwalior to grow in Asia

* Pays 82.4 mln euros including assumed debt

* Also buys China's Jiangsu Polyols

* Companies to be part of basic chemicals sub-division

(Adds details, background)

FRANKFURT, June 8 (Reuters) - German specialty chemicals maker Lanxess (LXSG.DE) agreed to buy the chemical operations of Indian peer Gwalior (GWCH.BO) for 82.4 million euros ($115 million) and also acquired a Chinese maker of chemical precursors to shore up its Asian business, it said on Monday.

The German company, which was spun off from Bayer BAYG.DE in 2005, said it would finance the transaction out of existing liquidity and that it expected the deal to increase earnings per share from 2010.

The takeover price includes assumed debt, Lanxess said.

In the same statement, Lanxess said it also agreed to acquire Chinese-based Jiangsu Polyols Chemical Co. Ltd., which made about 10 million euros in sales last year, for an undisclosed price.

Lanxess -- a leading maker of rubber for tyres which also produces chemicals for drugs, insecticides and for the treatment of leather -- has stressed that its investments for growth would be focused on emerging markets.

Chief Executive Axel Heitmann has reiterated recently that he would seek to buy companies that were put on offer for an attractive price even though the ongoing economic downturn would warrant particular caution.

Jiangsu Polyols, which makes ingredients for lubricants, paints and coatings and Gwalior, a supplier of precursors for pesticides, drugs and fragrances, will become part of Lanxess's Basic Chemicals sub-division.

Lanxess shares were little changed after the statement, down 2 percent at 0939 GMT, while Gwalior shares extended gains and were up 3.5 percent at 106.65 rupees ($3.77).

A person familiar with the plans had told Reuters in April that Lanxess was in advanced talks to acquire Gwalior.

(Reporting by Ludwig Burger)