FRANKFURT (Reuters) - Germany’s Henkel can spend up to 5 billion euros ($6.8 billion) on further acquisitions without putting its credit rating at risk, the maker of household goods and industrial glues told a German newspaper.
“We can spend between 4 and 5 billion euros without endangering our good grades with credit rating agencies. That allows us to carry out larger acquisitions,” Chief Executive Kasper Rorsted was quoted as saying in an interview with daily Sueddeutsche Zeitung.
The firm has been shopping for takeover targets for well over a year as a way to stay competitive in a consolidating consumer goods market.
It recently struck deals to buy French household cleaner maker Spotless and three U.S. hair care brands, dipping into a 4 billion euro war chest it had been building up over several quarters.
Standard & Poor’s and Fitch have long-term issuer ratings of “A” on Henkel.
Reporting by Ludwig Burger, editing by Louise Heavens