DUESSELDORF, Germany (Reuters) - German consumer goods group Henkel (HNKG_p.DE) has around 3.5-4 billion euros ($4.6-$5.2 billion) to play with for a large acquisition, the company’s chief executive said on Monday.
“Large acquisitions are not ruled out,” Kasper Rorsted said in response to questions at the company’s annual general meeting. He added Henkel would not endanger its credit ratings when making any large deal.
Henkel’s last major acquisition was of National Starch for 3.7 billion euros in 2008. It has now reduced debt to 85 million euros, compared with 3.8 billion following the National Starch deal, meaning bigger buys are back on the agenda.
Should it make an acquisition of the size of National Starch, the group will adjust its financial targets for the period to 2016, Rorsted reiterated.
Reporting by Victoria Bryan; Editing by Maria Sheahan